Labor’s baseline economic legacy

nat acc 1309

nat acc 1309 contributions to growth

On the left are the figures for GDP. On the right are the figures for contributions to growth. Conveniently the GDP data go back to September 2007 so there are a couple of things that are worth pointing out.

First we should note the recession we never had which is quite prominent. You will see a major drop in GDP that somehow escaped being recorded as two consecutive quarters of falling output. Same time as the unemployment rate went from the 3.9% recorded at the time to 5.8%. Didn’t have a recession? It was the recession we didn’t have to have, had it anyway but called it something else.

Then a mint of government spending later we have a massive debt as well as low growth and rising unemployment. GDP growth for the quarter was 0.6% and for the year less than two and a half. And if you’d like to see the evidence of public spending, look at the figures for GFCF-Priv and GFCF-Pub, that is private investment and public investment. Private is falling. Public is rising with a full year reduction in investment in both sectors together of negative 2.0%.

More evidence to ignore that shows public spending does not get you growth, employment or higher living standards.

These are very revealing figures. I only hope our new government understands that growth and prosperity can and will only come from the private sector acting on its own initiative.

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7 Responses to Labor’s baseline economic legacy

  1. manalive

    More evidence to ignore that shows public spending does not get you growth, employment or higher living standards …

    aside from the obvious.

  2. stackja

    On the left of politics are the figures for GDP. On the right of politics are the figures for contributions to growth.

  3. stackja

    Liberty Quotes
    “The national budget must be balanced. The public debt must be reduced; the arrogance of the authorities must be moderated and controlled. Payments to foreign governments must be reduced. If the nation doesn’t want to go bankrupt, people must again learn to work, instead of living on public assistance.” — Marcus Tullius Cicero

  4. HK_Brother

    Labor’s record…LOL!

  5. Spiro

    Of course, if the fall in private investment is the lead in a contraction in real GDP (growth), do you think the Laborites will be telling us that they and only they can save us from a great recession by spending a heap of taxpayers cash on crap?

  6. I am the Walrus, koo koo k'choo

    It also helps if the people in charge of the economy don’t include a sociopath, a village idiot and a reality-denying red-headed clown.

  7. Peewhit

    Steve perhaps you could update me on the multiplier effects of various industries. When I read a first year economics text book many years ago, the multiplier effect of primary industry was 5. So what is now considered to be the multiplier effect of government employment and the other industries. This must surely have a great effect on how many downstream jobs are created from any expenditure.

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