Is it over already?

Treasury is suggesting that the recession is over.

If it is we’ve wasted it.

The government has used the recession to start cutting back its expenditure and examine potential changes to its income.

But it’s only a start.

New Zealand was in recession before the rest of the world in spite of record payments for dairy products which play a very significant role in our economy.

I don’t think the fundamental problems which led to that early start to the recession have been fully addressed yet.

Unless they are our economic growth will never reach its full potential. 

Until that happens we won’t be able to afford the first world lifestyle – including health, education and other social services – to which we aspire.

2 Responses to Is it over already?

  1. murrayg1 says:

    With respect, you demonstrate a total lack of grasp of mathematics.
    No amount of tinkering with the cost of bureaucracy, no amount of reduction of red tape, and no amount of mining under DoC land, make the slightest amount of difference when your wish is for exponential expansion od activity, ad-infinitum.
    The tinkering and mining are arithmetic, the growth is exponential.
    Malhus was always going to be right, and the Club of Rome nailed it as to when – 2012 or close to – back in 1970.
    Treasury know diddly-squat about it, having been trained in the artificial understanding that resources are infinite. Free-market economics only operated when there was extraction-growth potential, and is in any case, only a reactive (not a proactive) mechanism. It will always react too late to endemic change – and has.
    You are right, we haven’t addressed the fundamentals. That was Kevin Rudd heading back to Australia saying “we have to light a fire under OPEC”, and Gordon Brown saying simultaneously “we need to build another 1000 nuclear power stations.
    Without an increase in energy supply, you don’t get an increase in activity – no amount of anything else will alter that.
    The pennies will drop over the next 3-5 years – watch and laugh, or, if you have a debt – cry.

    Like

  2. Indeed, there is much to believe that the celebrations might be premature.
    We have much to address before we can secure our prosperity long term and the global situation remains grim, as I have noted at Fairfacts Media.

    Like

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