NZ economy in far worse shape than free market capitalism cheerleader journalists proclaim
Bad Economic news out of America…
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
…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…
Treasury has told a committee of MPs it is “a little over halfway through” a review of Government-owned commercial assets – a process widely seen as the beginning of a campaign to sell some assets off.
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.
Increasingly having independent opinion in a mainstream media environment which mostly echo one another has become more important than ever, so if you value having an independent voice – please donate here.
How long can the global neoliberal economy go before large tracts of workers simply stop turning up for work, because they no longer see the point in it if they are unable to progress, buy items they need and give any dependents they have a future?
Our time at that point if we do not fix this, may be sooner than people think.
This government is a disgrace. A bunch of irresponsible, paid off, wankers.
There is definitely a huge “head in the sand” mentality within this CoC and their blinkered, supportive media! So biased, so in denial and so corrupt!!! Yes, our economy has almost collapsed but Luxon, Willis et al are ‘pretending’ it hasn’t while their coalition partners turn a blind eye. None of the stats back up an improving economy – funny that! Anyone still supporting the economics of this CoC is either grossly stupid or so sorted they don’t give a hoot. They’re the “I’m alright Jack brigade”! We’ll see – this is on you!
I’m sad to say you are probably absolutely 100% correct, Bomber.
Next we will hear the old “TINA” refrain : “ there is no alternative”, and the assets previous generations have paid for, will be flogged-off to pay for this incompetent government.
Bastards.
Headline in the Herald newspaper by Westpac economist apparently we are coming out of the woods, tell that to the families who can’t even afford mince
It’s the whole @#$%&!!! system that is a disgrace! To believe in a process in which government is defined as power routinely rotated between opposing ideologies, and expect that to produce lasting positive outcomes for the common good, is an affront to common sense. Especially when such a system’s utter failings; increasing poverty, unemployment, homelessness and social disparity are so apparent both here and in every state with which we compare ourselves. There is only one political system that should be considered; government of the people, for the people, by the people – enshrined in an unimpeachable constitution indivisible from the universal declaration of human rights. The other thing I’d like Santa to bring is….
Fabulous achievement by the Government in the rapidly improving economy with more major improvement forecast for next year, election year. The improvement is endorsed by all objective, credible economists. Another election landslide for the Right Wing is imminent.
Lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat lather rinse repeat
If you believe what you say, then you must also believe in the Tooth Fairy and the jolly old elf, Santa Claus!
In the real world…
https://www.nzherald.co.nz/nz/politics/increasingly-volatile-international-economists-think-new-zealand-politics-is-becoming-more-unstable/2QJ353GSONCLPBHKFHKEWV6JX4/
Bob you are childish, perhaps one day you will grow up.
Credible economists? Certainly not your hands picked far right economists.
https://www.nzherald.co.nz/nz/politics/increasingly-volatile-international-economists-think-new-zealand-politics-is-becoming-more-unstable/2QJ353GSONCLPBHKFHKEWV6JX4/
This CoC have completely ruined the country as only credible and intelligent people know. You Bob are neither.
Bob, name one of those economists. Ones that work for commercial banks don’t count.
Yes Bob. More myopic dribble that adds nothing to the debate. Although you did manage 3 sentences so credit where credit is due I guess.
The world’s a volatile place … always has been. And those making decisions now – probably always have been – largely a mix of psychopaths and self-interested individuals. Little ol’ New Zuld and the USA aside – and the UK is not doing too well it seems – you only have to look at Ethiopia, Somalia and the African West Coast, Ukraine, Palestine – and all those former hot spots now cooling off and those yet to emerge.
In the words of the immortal John Clarke aka Fred Dagg, we don’t know how lucky we are.
Great article. The predicted recovery in 2026 may not happen or will be very weak at best. The massive reduction in forward looking investment and government spending by the current government, has knocked out a key driver of economic growth and employment from the NZ economy.
What we need is ‘Steam Heat’. https://www.youtube.com/watch?v=0szHqIXQ2R8
From musical The Pyjama Game about union times and workers who could have some good times.
My son works for a mid sized nation wide company .The workers were informed that there would be restrictions on how much leave they can take over the xmas new year period due to lack of cash .Soon to be a casualty of the stop on building state homes I fear .He applied for another job a couple of weeks ago but was only offered a casual contract which seems to becoming the norm .24 years of experience may well be consigned to the growing scrap heap .
just wait until the AI bubble pops – the Nats will still be blaming Jacinda
It’s curious how some people think that low interest rates is somehow a reward for a good economy.
It isn’t.
Rather, it’s an attempt to stimulate consumption in a struggling economy.
Our economy has been wrecked by the short-termist and self-serving decisions by this incompetent and corrupt government.
We will pay dearly for this.
Yes, Ximonde and also interesting is our government thinks all those with mortgages will rush to the shops and spend those extra dollars when their interest rates drop. But many won’t spend due to job insecurity and of course the OCR will eventually go back up catching some out again, not being able to service bigger rates. And how many people have mortgages and will their increased spending lead to more jobs and if so for how long as after the xmas period most people have no money left. So, it is basically like a sugar hit not sustainable.