THE ECONOMY The facade: A Rock Star Economy The Reality: We are enjoying the the dairy commodity boom, another property bubble and the activity generated from the Christchurch rebuild. Agricultural markets fluctuate, all our eggs are in one agricultural basket and all we need is another embarrassing contamination and we could lose markets quickly. Overblown property prices only benefit a few, a later crash is inevitable and Christchurch is a temporary phenomenon. The recovery is an unequal one, only 36% of those participating in a Stuff survey feel that they are better off and for the very wealthy the recession ended three years ago, the trickle down isnt occurring. Research and Development is underfunded as a % of our GDP. Our current account deficit is still one of the highest in the OECD and the use of GDP is not a good measure of general economic performance. What the Government is doing: Throwing out lots of good news stories and claiming anyone who points out the weaknesses are just party poppers. It is still selling assets (Genesis Energy) and borrowing heavily.localbodies-bsprout.blogspot.co.nz/2014/03/government-spin-and-hidden-secrets.html?spref=fb.
Posted on: Tue, 04 Mar 2014 09:29:54 +0000
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