Sunday, January 4, 2009

Compare and contrast: Gillardia v Gordonistan












Earlier this week, Poneke was remarking about the buzzing prosperity of Brisbane, lamenting that we in New Zealand have been 'truly left behind.'

This is a theme of much commentary on this and other blogs. Of course, we raise the issue why, such as the sound economic stewardship of John Howard and \Peter Costello, in contrast to that of clark and Cullen, who squandered so many good years, leaving behind a legacy of a decade or more of deficits. And at a time of global crisis, it will be particulalrly tough for National to remedy.

The continuing good fortune of Australia, which its Liarbor government seems not to have spoilt yet, is reflected in comments from ambitious deputy PM Julia Guillard. In comments reported a few days back, the hard leftist and Clarkula clone spoke of a job situation that 'could get worse' in 2009. Year-end unemployment of 5.75% doesn't seem bad, 'Bankrupt Britain' has surpassed that aleady.

Indeed, Britain is set for its wiorst recession in decades, economic growth of NEGATIVE 3%, three million unemployed, another ten per cent or so off house prices and so on. Not to mention one in ten stores closing once the January sales are over. It is all increadibly gloomy and seemingly getting worse. Government borrowing is at horrendous levels and the pound Sterling is sinking fast, even against our own Pacific Peso.

So which track will New Zealand follow? Admittedly, Australia has been cushioned by its mineral wealth to some extent. But the best guide will be to look at the economic policies of the past as well as the present. New Zealand under Uncle Helen followed similar tax and spend socialism of Blair and Brown, where property booms, rather than producticity, fuelled economic growth and prosoperity. Now, such booms have turned to bust, it is likely that we will suffer more than Australia, though not as much as Gordonistan. Fortunately, we now have wise heads in the Treasury and Beehive to help stave off the worst. John Key and Bill English have a much greater understanding of world events and markets that Gordon Brown and his ill-fated Chancellor Alastair Darling ever could hope to have.

5 comments:

KG said...

Perhaps too, the fact that Oz is a more-or-less cohesive society and Aussies have huge self-confidence contributes to the mood and the prosperity there?

Anonymous said...

We have wise heads in the treasury to be sure.
But the briefing to the PM was more radical than ACTs policy let alone National. How long will it take to fix 10 years of Labours destruction of the NZ economy and the best part of 10 more years of neglect before then?
(and let's cut the msm crap that the Roger and Ruth reforms were kept by Helen or even Shipley orf Bolger)

Remember that the policies of the Obamessiah are to the right of ACT and that even Billary are to the right of him.

The fact is that Labour government is simply incompatible with democracy or prosperity. Something Fiji has realized but NZ and the UK have not.

Ackers said...

Considering Australia is most likely heading into defecit territory and Cullen's legacy correct me if I'm wrong has been and still is a surplus your analysis seems like crap to me.

Have just spent the last 12 days in NZ and seriously if you got your snapshot of NZ from the commentators on Kiwiblog or No Minister it would indeed seem like a foreign country.

Luckily family and friends seem much as family and friends in OZ. Still reasonably optimistic despite the impending gloom we all know is coming.

Anonymous said...

Considering Australia is most likely heading into defecit territory

not really no - the austerity measures will quite easily fix things there. And Howard did a much much better job than Helen of course over the last 10 years or so.

and Cullen's legacy correct me if I'm wrong has been and still is a surplus your analysis seems like crap to me.


Nope. Cullen's legacy is an ever increasing structural deficit, and (even more importantly) ever decreasing productivity.


Have just spent the last 12 days in NZ and seriously if you got your snapshot of NZ from the commentators on Kiwiblog or No Minister it would indeed seem like a foreign country.


Yeah well we need the tourist dollar.
But let's be clear: things are as bad as they have ever been since WW2 in NZ, and heading for the worst ever (including the Great Depression).

These aren't my opinions: they are in black and white in the treasury BIM


Luckily family and friends seem much as family and friends in OZ. Still reasonably optimistic despite the impending gloom we all know is coming.


well yeah. Because with family in OZ they have the option of moving (and should seriously consider it asap)

FAIRFACTS MEDIA said...

Hope you had an enjoyable stay Ackers.
Perhaps the optimism of the Kiwis stems from them voting out Uncle Helen.
I recall that following the election, Roy Morgan noted a sharp leap in those believing the country was heading in the right direction.
Here, the Brits seem notably gloomy.
It might be a partciular trait of the whinging Poms.
But they are still stuck with Gordon Brown.