The Productivity Statistics (1988–2005). show the true reality of the damage helengrad has done to the New Zealand Economy. They inherited a steadily growing economy with excellent growth in productivity and they have broken it. Multifactor productivity has reduced from trend 2.7% to a mere 1.1%. Their only success has been to increase the number of people in work.
This will not be simply a short sharp recession as Cullen spins, it is a deterioration with long term consequences. Labour have milked high commodity prices and increased worked hours for the growth in the Economy over the last 5 years. The benefit of increased working hours can only increase growth once. The next government will struggle to keep that high nominal level of employment. International Commodity prices cannot be relied on to keep increasing exponentially. Evidence shows they have tanked.
The only way that the people of New Zealand can become wealthier in the long term is to work more productively.
The following table shows the Compound Annual Growth Rates of various productivity factors. Labour have had power since Nov 99, effectively March 2000 on being the closest year before they got organised to start breaking things.
The first few years of National control in the early 90's were marked by measures taken to control serious fiscal problems inherited from the out of control last year of Labour. Statistics NZ marks 1993 as a change. The growth in productivity started then. At issue is what Labour has done to the trend they inherited from National. I have also shown the full 10 years of National for comparison.
So making the comparison of the last 5 years under Labour vs the previous 7 under National we see the damage done. Labour have achieved only 1.5% growth in Labour productivity and 1.1% in multifactor productivity. National achieved an exceptional 3.1% growth in Labour productivity and 2.7% in multifactor productivity.
|March year||Productivity indexes|
|2005 vs 2000||1.5%||0.5%||1.1%|
|2000 vs 1990||2.8%||1.1%||2.1%|
|2000 vs 1993||3.1%||2.0%||2.7%|
|2005 vs 1988||2.6%||0.3%||1.8%|
These are damning statistics. The current recession, The blown out current account deficit and the sabotage of Productivity growth.
All the spin on riding the Growth wave is just meaningless twaddle.
The detailed data presented by NZ statistics over such a long time frame offered a genuine opporutnity to measure this governments performance. Measurement has got better. I challenge all those bloggers and commentators supporting this government to justify this appalling set of statistics.
UPDATE: link fixed.