NZ Economy in far worse shape than free market capitalism cheerleader journalists proclaim

Bad Economic news out of America…

1 big thing: Main Street bust

Economic pain is mounting quickly for America’s small businesses, raising the chances of a Main Street recession despite an AI-powered growth boom, Axios’ Courtenay Brown writes.

Why it matters: The fortunes of mom-and-pop businesses are diverging from their larger counterparts.

• • The dynamic isn’t new, but the divide is getting bigger, faster. It exposes a vulnerability for President Trump’s economic agenda, which top officials have said is focused on reigniting Main Street businesses.

🖼️ The big picture: Larger businesses have been able to adapt to a tough economic backdrop — historic tariffs, high interest rates and a more cautious consumer — in ways far more challenging for small companies with fewer resources.

• • “They can set prices, they can change suppliers, they can hire contractors instead of permanent employees in a more sophisticated way,” says ADP chief economist Nela Richardson. “They have more tools in the toolbox.”

Zoom in: The private sector shed 32,000 jobs in November, according to payroll processor ADP. Small firms — those with fewer than 50 employees — accounted for all the losses.

• • Those businesses reported a net loss of 120,000 jobs, the largest number small businesses have cut since the onset of the pandemic. Larger businesses grew, but not enough to offset the cuts elsewhere.

🥊 Reality check: The Trump administration shrugged off the ADP data that indicated a hiring bust. Commerce Secretary Howard Lutnick told CNBC that the cuts were due to factors unrelated to tariffs, like immigration crackdowns.

• • But ADP had earlier told reporters that small businesses generally had less demand for workers, not that staff weren’t available for hire.

…in NZ, the cheerleaders for Free Market Capitalism are all celebrating that the ‘green shoots of recover’ are here…

Pop the bubbly, the economic recovery is here (finally) – Liam Dann

…but look at how bad the economy really is…

RBNZ says job-finding rate is worst in 30 years but businesses are hesitant to fire staff

Do rate rises in response to the OCR cut suggest the Reserve Bank bungled its comms and slowed the economy recovery?

…we have the worst economic growth since Ruth Richardson!

…Bernard Hickey points out new funding is just personal loans…

…look at how Business Credit demands are still at 2023 levels…

…because of liquidations…

…despite all the Free Market Capitalism Cheerleaders crying the recession is over and green shoots are here to stay, the economy is very fucked, and you can see that in retail spending…

Black Friday spending down in 2025 in blow to retail recovery

…the Government are so desperate for revenue they are lining up a mass asset sale…

Barbara Edmonds says National ‘planning to sell off public assets’ after Treasury confirms it is halfway through asset review

Speaking during Treasury’s scrutiny week appearance at Parliament, Mark Sowden, Treasury’s deputy secretary system and sector performance, confirmed Treasury was “a little over halfway through in terms of the programme“.

Labour’s finance spokeswoman Barbara Edmonds told the Herald “it is clear National is planning to sell off our public assets”.

“It is clear that National is planning to sell off our public assets. Today the Treasury said they are assessing whether the Government should own certain public assets, a clear indication that they are laying the groundwork for asset sales. Labour will protect our public assets,” she said.

Treasury began the work last year. When the Government was sworn-in, it was advised that asset recycling might be a way of keeping up investment in infrastructure while reducing pressure on borrowing.

…I don’t think people understand just how much a body blow the Government’s decision to destroy Labour’s infrastructure pipeline last year would be.

We are 3 giant sparsely populated Islands that have always required the State to be the 40% foundation stone.

This Government has kicked that stone out, pushed user pays costs onto local government, amputated public services while borrowing for tax cuts, corporate welfare and landlord loop holes and lo and fucking behold you get cascade economic failure.

They have strangled off the common good for their donors interests.

There is a difference between optimism that the economy will turn around and blind delusion.

We are at the blind delusion phase.

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