Rest easy everyone: Jacinda’s back.

We’re all okay guys. Jacinda’s back and she’s not going to let pesky things like business confidence get in the way of her reality. Even though falling business confidence is a reality, it is not part of HER reality. So that’s okay then.?Stuff?reports: quote

Jacinda Ardern says she will push back against surveys about weak business confidence, with a focus on measures showing the economy is healthy.

On Monday afternoon Treasury issued a warning that a combination of a cooling housing market and falling business confidence meant its forecasts for Crown revenue were at risk. end quote

Those blasted kids at Treasury spoiling the party again. Someone needs to get them under control.?quote:

“Although we think growth held up in the June quarter, weaker confidence, in conjunction with other data, highlight the risk that growth over the coming fiscal year may be weaker-than-forecast in the Budget,” Treasury said in a statement.

Grant Robertson’s first Budget saw Treasury forecasts that the economy would continue to grow at around 3 per cent in each of the next few years, giving scope for the Government to increase spending as debt as a share of the economy fell. end quote.

Growth may?have held up in the June quarter but with the problems in the construction sector and the blindsiding of the oil and gas industry, confidence is now at new lows. Jacinda simply does not understand that a loss in confidence means a lack of investment, a reduction of new hiring, and a ‘batten down the hatches’ attitude from business. Growth will fall significantly simply because lower confidence means lower activity. She simply does not understand this. quote.

At the time the forecasts were branded as highly optimistic by economists, who warned that a fall in business investment could see growth – and therefore Government revenue – miss the target. end quote.

Those pesky kids in Treasury did warn that the government figures were too optimistic – and got branded as ‘kids’ because of it. quote:

In July, an ANZ survey on business confidence showed the lowest reading since the global financial crisis.

But Ardern said she would focus on measures showing the economy was still performing well. end quote.

In other words, she’s going to stick her fingers in her ears and go – “La-la-la-la – I can’t hear you”, and all will be well.

Have you ever come across a more hopeless and incompetent prime minister? And Tracey Watkins thinks she will be the saviour of the economy? On what planet? quote:

“We have a survey that’s telling us some of the business perceptions that exist, but alongside that we also have strong forecast growth”, low unemployment, a Government surplus and a spending boost from July 1 from the families package,?Ardern said.

“I’m interested in the reality of what our economy is doing and how it is performing.” end quote.

In other words, we will concentrate on the reports that say what we want to hear, and we will ignore the rest. She is not the mother of dragons, she is the mother of ostriches. quote:

Asked if she believed that the Government had made mistakes which contributed to lower business confidence, Ardern pointed to political bias in the confidence surveys. Independent economists have acknowledged a disconnect between business confidence and economic growth under past Labour Governments.

“When I look back at how business confidence has tracked in the past, there is a correlation between Labour Government and what happens with business confidence, that sits in direct contract to how our economy has performed under a Labour Government. end quote.

Oh, here we go again. Everything is fine. It is just that business hates Labour. That’s why Ebert Construction has collapsed. Its directors hate Labour, so collapsed their company just to spite the government. quote:

National leader Simon Bridges said Ardern “is in denial” about the direct impact between her Government’s decisions and plummeting business confidence.

“The Government should recognise the impact its bad decisions are having and take action to ease the concerns and give Kiwi businesses the confidence to invest to grow and hire more New Zealanders. If the Government doesn’t the concern will continue to grow and New Zealanders will miss out.” end quote.

She is in denial. She can’t fix it with fairy dust, so she pretends it isn’t happening. quote.

Treasury said that while there had been positive recent news for the economy, such as a 7.5 per cent?increase in new dwelling consents in the June quarter, up from 6.2 per cent in the March quarter, the risks appeared to be for lower growth.

“Risks to our growth forecasts are rising as the housing market cools, business confidence weakens, and international trade tensions rise,” the statement said. End quote.

So, according to Jacinda, everyone in business, and those ‘kids’ in Treasury have got it wrong, and she has got it right. I understand that the government needs to remain upbeat about the economy or it risks making things even worse, but it is very noticeable nowadays that even Grant Robertson no longer seems to be peddling the ‘business hates Labour’ line. Reality seems to be starting to sink in for the finance minister. However it simply does not fit with the prime minister’s narrative so it doesn’t exist. That is what we are dealing with here. But, don’t worry dear people. Never fear, Jacinda has got this. We can all rest easy.

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