Farrar slams Little’s invented stats

David Farrar knows a thing or two about statistics, and a fair amount about politics. When he isn’t writing about arts, lifestyle and travel topics he dabbles in politics.

Today he slams Andrew Little’s made up stats from his pre-budget speech yesterday.

Stuff further reports:

Little said just 37 per cent of economic growth had gone into the pay packets of working families since National came to power – down from over 50 per cent under the previous Labour government. 

That meant the average family had lost out on more than $13,000 under the Government, and would miss out on $50 a week this year.

The use of this statistic is rather revealing, as to both how desperate and also how ill informed Labour are. Three things I’d note:  

  1. In all my years of politics I’ve never known a voter to talk about the proportion of economic growth that goes to wages. 99% of NZers don’t even know such a statistic exists lets alone give a flying f**k about it. I’m not sure I’ve even hear of it before. It reeks of desperation in trying to find an obscure economic statistic that they can campaign on. Voters care about jobs, wages, hospitals, schools and families – not the proportion of economic growth that goes to salaries. Wages have in fact risen twice as fast as inflation in the last seven years.
  2. Little seems to believe that the Government sits around the Cabinet table and determines what share of economic growth will go to wages. The Government does not create the economic growth and decide which sectors generate it and where. While policies have some small impact, the over whelming factor is decisions made by tens of thousands of businesses.
  3. Use of this statistic goes against Labour’s efforts to show they understand the modern economy. They are effectively railing against entrepreneurs and innovation. Why might a smaller share of economic growth by going to salaries. Well companies like Xero and Uber. They’re great for the economy (and customers) but according to Little they are robbing working NZers of $50 a week.

So Labour have managed to look desperate, ill informed and backwards in one speech. That’s quite an achievement.

All of this focus on salaries and wages seems to ignore all the stunning policy work that Grant Robertson has been doing for the Future of Work Commission he formed.

This grandstanding has all the hallmarks of hankering for a 1950s command and control style economy. I think they actually believe that there are real levers, pulleys and switches for the economy wired into the cabinet room atop the Beehive.

The funny thing here is that Labour opposes the TPPA, which would increase GDP, and economic growth and as a consequence further erode their made up statistic.

 

– Kiwiblog


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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.

To read Cam’s previous articles click on his name in blue.

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