Media Party fail to convince voters that the economy is tanking

This is amusing.  Consumer confidence is strong on the back of a drop in benefit numbers and low inflation, and somehow this is a bad news story because people that aren’t on farms should be concerned about milk prices instead.

New Zealand consumers are ignoring bad economic news with sentiment broadly stable at a respectable level, according to the ANZ-Roy Morgan Consumer Confidence Index.

ANZ senior economist Philip Borkin said if they wanted, there were several things consumers could get wound up about.

The dairy sector faced a daunting period of ongoing poor returns and an intense focus on costs.

The adjustment had much further to go.

Those wanting to get on to the housing ladder would be looking a recent price growth with despair, he said.

It was the same for savers, given ongoing falls in interest rates.

Media always look at the economy from the point of view of people who are poor.  House prices going up also means lots of people are feeling great about their increase in equity.

People who save and are paid interest are paid less, but the actual earnings are what they are paid less inflation.  No point getting 6% on your savings with a 5.5% inflation rate.   It would be better, by way of example, to get 2.5% on your savings with a 0.4% inflation rate.  

And before anyone says “but inflation does not include house prices”, let me refer you to people who own houses and have investments (that’s not Andrew Little), they are happy as.

Apparently we should all be down in the dumps because first home buyers can’t do it in Auckland, and dairy farmers are going through a tough period.

Clearly, to media, the country is made up out of dairy farmers and young people wanting a home in Auckland.

The index rose two points in April to 120, slightly above the historical average and continuing a theme evident since the start of the year.

A net 8% felt better off compared to a year ago, broadly where it had held for four months.

A net 28% were positive regarding the next 12 months.

Net optimism regarding the short-term economic outlook, at net 9%, reached a five-month high.

A net 38% believed it was a good time to buy a major household item, up 4% from March.

Exactly.  I don’t know why the media are just so hung up about Dairy and house prices.  Sure, they’re part of the mix, but everything else is going gang busters.

 

– Dene Mackenzie, ODT


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

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