NZ has highest wealth growth

October 17th, 2014 at 10:00 am by David Farrar

Stuff reports:

New Zealand has topped the global charts for wealth growth between 2000 and 2014, according to a report by Credit Suisse.

The Global Wealth report said favourable exchange rates meant the median wealth per adult in New Zealand grew by more than 300 per cent, with Australia a close second.

New Zealand had one of the biggest jumps in currency growth against the greenback in 2013-14, up 8 per cent.

In constant currency terms, however, New Zealand’s wealth grew much more modestly, just over 100 per cent and in line with countries like Kuwait.

Not too bad.

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Issues that matter – the Economy

September 9th, 2014 at 4:00 pm by David Farrar

I think the economy matters and should be a much bigger issue in this election so I’ve put together almost a dozen graphs showing the difference between National and Labour’s record on 11 important economic indicators. These are issues that matter to families and businesses.

foodinflation

 

Food prices increased 18.6% in Labour’s last term. Food prices have increased only 1.3% in National’s last three years.

currentaccount

 

Labour left office with the current account deficit at 7.9% of GDP. It is now at 2.8%.

electprices

 

Power prices went up 22.9% in Labour’s last three years. The rate has halved to 12.1% in National’s last three years.

austmigration

 

There was a net loss of 35,830 people to Australia in Labour’s last year of office. In the last 12 months only 7,150 net departures – and in recent months under 100 a month.

inflation

 

The overall cost of living increases or inflation totalled 9.5% in Labour’s last three years. A third of that now at 3.3% over the last three years of National.

bot

 

Labour left office with an annual balance of trade deficit of $5.3 billion. In the last 12 months it has been a surplus of $1.3 billion

fruitvege

 

Remember Labour wanting to remove GST off fruit and vegetables. Under the last three years of Labour their prices went up 33.2%! Total increase in the last three years is a mere 1.4%.

deficit

 

The deficit in 2008/09 (on the fiscal settings left by Labour, and the impact of the GFC) was a massive $10.5 billion. Labour have opposed every piece of spending restraint since, but despite their opposition we are on track to a small $300 million surplus this year.

incomes

 

In June 2008 the median after tax income for a full time worker was $38,600 (in 2013 dollars). That has increased to $42,100 by June 2013, meaning the median FT worker has an extra $3,500 income to spend – and this during the worst recession the world has seen since the Great Depression.

unemployment

 

Unemployment went up by 27,000 in Labour’s last year in office. It has declined by 17.000 in the last 12 months, and is projected to keep declining.

You are welcome to share any or all of these graphs. All data is directly from Stats NZ Infoshare except the income data where I have used the IRD website to calculate the tax impact and the Reserve Bank website to adjust them for inflation.

New Zealanders have a clear choice. Remaining on our present course which is surplus, falling unemployment, low prices, fewer Kiwis leaving, growing after tax incomes and affordable food – or a radical change of policy which would see many more taxes, less competition, a massively expanded state and an unstable alternate Government.

It is only through a healthy economy do we get to have the money to fund our health and education systems. And that brings me to my final graph.

gdp

That is economic growth for Labour’s last year in office, and National’s last 12 months.

Government do not directly control many of these economic measures. But they can and do impact them with their economic policies. The difference between where we are today and where we were in the mid to late 2000s is stark.

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June 2013 Income survey

October 7th, 2013 at 11:00 am by David Farrar

Stats  NZ has published their latest annual income survey. Some interesting stats:

  • Average income from wages/salaries up 6% in the last year
  • Average income from all sources up 2.2% and median income from all sources up 2.7% which suggests less income inequality
  • Median income for those in paid employment is $45,729 and average income is $53,759
  • Median income for those with no qualifications is $39,002, $50,005 for a bachelors degree and $67,003 for a post-grad degree
  • Age is a major factor in income. 50% of those in the bottom income quintile are aged under 25, while under 25s make up just 2% of the top income quintile. Those arguing that 16 year olds must get paid $18.40 an hour are basically buts.
  • The average income for a couple with two dependent children is $97,924 while for a sole parent with dependent children is $37,126
  • Government transfers represent 3% of the income of an average couple with two children and 46% of the income an an average sole parent.
  • The median salary/wage for a 40 hour week  is $45,009 and the average is $54,229
  • 1,197,100 people receive a Government transfer, 1,892,100 are in employment, 323,900 are self-employed
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Beware the average income stat

September 10th, 2013 at 2:00 pm by David Farrar

A reader e-mailed in asking:

I’d be interested to know if 70% of New Zealanders actually earn less than $43,000.

This is in relation to some claims on another blog.

The stat is correct, but it is a fairly meaningless stat. When you see stats about the average or median income for all adult New Zealanders, you need to remember this is including hundreds of thousands of New Zealanders who are not actually in work! It includes the 15 year olds at school, the tertiary students in full-time study, the non-working spouses, the beneficiaries, the retired etc.

The more useful stat for me is what is the average hourly income of someone in employment. Because it is people in employment who fund the rest of society.

The latest average hourly wage is $27.55 an hour. That equates to $55,000 a year if you did a 40 hour week. The average or mean is different from the median, but I use it here as Stats NZ only provide the mean in their quarterly stats.

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How much Kiwis earn?

March 11th, 2013 at 7:00 am by David Farrar

How-Much-Do-Kiwis-Earn revised

A reader sent in this interesting infographic. From this site.

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Household incomes

December 2nd, 2012 at 4:00 pm by David Farrar

The latest household income survey has some good and interesting news in it.

  • Average annual household income from all regular sources increased from $79,256 to $81,067 – a 2.3% increase
  • Average annual household income from wages and salaries increased from $77,843 to $82,029 – a 5.4% increase
  • Total housing costs as a proportion of total regular household income decreased from 16.4 percent to 16.0 percent.
  • The median annual regular household income went up 5.8% from $62,853 to $66,469
  • The median annual regular household income from salaries went up 7.9% from $46,410 to $50,057
  • The median annual personal income from salaries, for someone in employment, went up 5.9% from $37,673 to $39,889
  • The average annual personal income from salaries, for someone in employment, went up 4.0% from $44,376 to $46,169
  • The average household with a mortgage is paying $20 a week less than a year ago
  • In Auckland the average annual housing cost has dropped from $17,619 to $16,654 while the average income has increased from $90,762 to $93,532 so the proportion spent on housing costs has dropped from 19.4% to 17.8%.
  • Only around 20% of those in the two lowest income deciles say they are dissatisfied with their material standard of living, and 60% are satisfied.
  • 10% of NZers have income of over $80,000. If you have a bachelors degree it is 24%, masters 26%, and doctorate 34%

It is always interesting to see how the stats measure up against the perception.

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Income and Sex

August 4th, 2011 at 8:07 am by David Farrar

Rachel Browne at Stuff writes:

A survey by Relationships Australia has revealed that people’s sex lives improve along with their income – and that the magic number for satisfaction starts at about A$80,000.

Only 44 per cent of people with a household income under A$60,000 a year are sexually active, compared with 81 per cent of people with a household income of more than A$80,000 a year.

Maybe this is why Labour is determined to tax higher earners more? :-)

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