Why 3 more years of National are going to be the worst for NZs economy - at a glance. 1. The NZ economy is driven primarily by exports. Our biggest markets are China and the US. The Chinese economy is cooling and theyve been building the capability to reduce imports. Our exports to China will drop, our demand for cheap chinese products wont. The US economy is heating up but after a very long lull theyre going to be cautious, that means restrictive imports until the Trade Agreement is signed at which point, given JKs propensity to drop his pant for the US there will be an influx of US products to NZ and the exports to the US will increase slightly but at friendlier prices thereby maintaining a status quo. 2. National have been promising 150,000 new jobs for 6 years, there have been more job losses than increases. Primarily in the public sector, the trend of council amalgamation will continue, those public sector jobs will continue to be lost, the private sector does not have the capacity to absorb the newly redundant, so, the magic 150,000 job figure will never be reached. What you will get however is an increase in people on the benefit who will then be bribed using our tax dollars to move to Christchurch. In the meantime, the councils who are running broke will now hire consultants at ridiculous rates to fill the gaps created by the redundancies and rates will inevitably increase. 3. The Christchurch earthquakes were a single event, the work will dry up, the people bribed into going there will suddenly find themselves jobless and the influx to Auckland will begin yet again. This may happen sooner rather than later in the event, god forbid, there is another earthquake. 4. Property speculation and House prices will hit record highs in Auckland, the returns are fantastic and banks are eager to lend money. It is by far the most profitable business in the country. Its also a business that doesnt create jobs, the same properties are recycled at ever increasing prices. Expect the Median house prices in Auckland to hit or slightly exceed $800K by mid-late 2015. The National government has a plan, so 2015 - 2016 will also be the years where NZ is introduced to UK style council housing, small, dingy apartments in massive apartment blocks. Flatting and or Renting will now be referred to as Slumming. 5. The minimum wage will increase at a crawl (if at all) and the poor long suffering businesses who were worried about increasing what they pay their staff will breathe a sigh of relief because they can continue to make good profit and create equity in the business for themselves without having to worry about the ungrateful wretches who work for them. Most of these businesses will fold within 2 to 3 years because if their business couldnt sustain increasing the wages of their staff then they were very poorly run businesses in the first place. Either that or they will be onsold at a nice profit to someone else to milk for a while. So, all in all, JK will keep to message Why change anything, its all good, nothing to see here. Good luck all, well need it.
Posted on: Sun, 21 Sep 2014 00:16:04 +0000
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