Discussion:
Intelligent comment on GDP
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Rich80105
2020-09-21 23:05:50 UTC
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https://www.pundit.co.nz/content/cddtdt077rjuttg3a0kfygglqzop1d
Crash
2020-09-21 23:23:18 UTC
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Post by Rich80105
https://www.pundit.co.nz/content/cddtdt077rjuttg3a0kfygglqzop1d
Was that because Judith Collins got a negative mention or because of
the rest of Easton's comments? Note that I see Easton's conclusions
as believable.


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Crash McBash
Rich80105
2020-09-22 00:54:33 UTC
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Post by Crash
Post by Rich80105
https://www.pundit.co.nz/content/cddtdt077rjuttg3a0kfygglqzop1d
Was that because Judith Collins got a negative mention or because of
the rest of Easton's comments? Note that I see Easton's conclusions
as believable.
No, I posted for the rest of Easton's comments. He is always quite
fair about the political discourse; as he says National would probably
have acted very similarly to the government regarding Covid; what he
did not say was that by not acknowledging that but making up often
petty objections for the sake of it Bridges lost support that
National could have retained if they had shared the thrust of the
decisions; but that is a different issue from the one Easton was
commenting on.
James Christophers
2020-09-22 01:22:54 UTC
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Post by Crash
Post by Rich80105
https://www.pundit.co.nz/content/cddtdt077rjuttg3a0kfygglqzop1d
Was that because Judith Collins got a negative mention or because of
the rest of Easton's comments? Note that I see Easton's conclusions
as believable.
Yes. However, never once does he mention that our current economic situation comes on the back of an economy that, in real-productivity terms, has been flatlining since 2010. One reason for this is neatly summed up in the first comment following his article:

"I often wonder when we will stop making work for ourselves. Most of what goes into GDP is completely unnecessary. We are encouraged to spend money to keep others employed and others do the same for us. It is very wasteful." The writer is referring to the zero-productivity "service" industries. New Zealand is drowning in them.

As one waggish economist put it years ago, "Any economy must ultimately founder when it comprises little more than people swapping the same coin betwen them for opening and closing doors for each other."

Over the past ten years the 'pie' has never grown in real-productivity terms, whereas increrased wealth for the already wealthy most certainly has (their funds diverted exclusively to zero-productivity asset growth), leading to the inexorable widening of the poverty gap and the inability of government - any government - to improve the lot of society's poorest without borrowing from third parties. We are living by the grace and favour of the international creditors we dutifully kneel to.

Cloud-cuckoo land

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