Last week, National's finance spokeswoman Amy Adams was in Palmerston North and, among other things, hosted a morning tea attended by around 50 people.
She talked about the economy, her concerns about where it's heading and the fact the Labour-NZ First-Green coalition government seems to have its head in the sand when it comes to their anti-growth policies and the effect they're having on business confidence.
Adams' commentary was both interesting and insightful.
She pointed out that since this government took office, gross domestic product per capita has slowed considerably, and growth forecasts have been downgraded by all major banks and economic agencies. In addition, job growth has fallen by 60 per cent and, in the last three months, 4000 more people have joined the ranks of the unemployed.
At the same time, an increase in the cost of living is hitting our poorest and most vulnerable hard.
There are new taxes, too, with even more on the horizon; and there's an air of uncertainty – about industrial relations changes, immigration settings, shutting down the oil and gas industry, labour capacity constraints and banning foreign investment.
On top of all this, economic growth is slowing down. When businesses are uncertain and not willing to invest or hire new workers, GDP growth slows.
The fact it is tracking below government forecasts is a very real concern as every 1 per cent drop in GDP growth equates to around $800 million less that the Government has to spend each year. So when GDP growth slows down, Kiwis miss out on higher wages and better living standards.
