The importance of economic growth for the poor

Dan Mitchell, our man in DC with current US data to demonstrate that all boats rise and fall together.

See also Jim Rose and the NZ Taxpayers.

That reminds me, we are going to NZ at Christmas, travelling from bottom to top, NZ Cats might like to get in touch.

Other breaking news, Demons defeat Hawks, Sharks edge Panthers by a point and Wind and Other are doing 15% of demand at 7 am.

And Andrew Norton, the only classical liberal in Carlton, is still at work.

This entry was posted in Economics and economy, Rafe, Taxation. Bookmark the permalink.

10 Responses to The importance of economic growth for the poor

  1. John Constantine

    Economic growth in Australia, where half the workforce depends upon the Big State Ponzi and a quarter of the rest rely upon the population Property Ponzi.

    It looks like that without turnbullites last sneaky extra million odd consumption machines snuck in under visas, even gross growth would have been nothing.

    Their shorten looting cartel can sign the treaty giving the visa Dreamers their million socialist votes, then let the market mark the Australian dollar down to its true value as the currency of a war economy under sanctions from without and within.

    Comrades.

  2. Entropy

    I wonder what caused the spike in high income earnings in advance if the other quintiles in the mid nineties?

  3. Tom

    Other breaking news, Demons defeat Hawks …

    I now think the Demons can go all the way, but, of course, like Trump’s victory, this is pure populism and can’t possibly happen.

    Next week’s preliminary final in Perf will be a cracker. Go Dees!

  4. Bruce of Newcastle

    The unemployment rate for black people in the US is at a record low.
    Likewise for Hispanic Americans.
    Yet I don’t hear shouts for joy from the respective political interest groups.
    Why is that?

  5. Gavin R Putland

    Growth works well for the poor until the rent catches up.

  6. .

    So growth doesn’t make housing cheaper, Gav?

    It’s not as if land prices in Australia are expensive because of growth. In fact they retard growth as well.

    Please don’t tell us you’re asserting the iron law of wages as true.

  7. Gavin R Putland

    Dot at #2817054:

    No, it’s not “the iron law of wages”; it’s “all-devouring rent”.

    The good new is that the “all” is a bit rubbery: it depends on the intensity of competition for land, which in turn can be influenced by policy — in particular, whether policy encourages speculation and waste.

    Yes, high land prices slow growth. But growth also feeds into land prices. That combination makes a negative feedback loop with a delay in it, which is a recipe for instability.

  8. .

    The problem is now that on top of zoning rules, we have land development taxed at such a high rate that the incentive to develop is reduced and we end up with a lack of competition in supply – and it encourages speculation on the demand side.

    I don’t mind if von Thunen rents go up over time. It is a sign of productivity. Likewise, whilst we tolerate high land prices, we’re still better off here than in India or Mexico. The issue is if factor payments grow more quickly than resource prices.

  9. Mother Lode

    Yet I don’t hear shouts for joy from the respective political interest groups.

    Political interest groups are not the demographic, but a thin crust that forms on the top which demands it be treated as voice of the demographic. They get away with it because society at large and the demographic treat them as such.

    Trump, wicked bigoted Trump, has done more for black people than that venom spitting creature Al Sharpton. Trump is also the greatest threat to Sharpton and his hold on Black America.

    You hear the community leaders talk about Trump taking them back – well, backing up is the smart thing to do if you have driven down a dead end ally.

    Hopefully he will take them back – to stable families, dignity, community, and self-reliance.

    How many lives have been wasted by mainchancers and spivs. Just the same as happened here to Aborigines, consigned to an eternal infancy, kept sequestered and isolated with their keepers the only contact, using them as props for their own gratification and gain.

    All these years of Dodsons etc and they are in as parlous a state as they have ever been, deliberately kept ignorant and feeling threatened so they cling desperately to their spokespricks’ tattered tails, too terrified to let go.

    Poor dupes.

  10. Dr Fred Lenin

    Critics of Trump attacked him for not cutting the expenditure their obama socialists had started ,and he hadn’t ,however he put 900,000 people back in private sector jobs all paying tax which meant that debt increased by much less than if hilarity and the gang had won .

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