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Question One:

In the process of producing our nations goods and services (GDP), is there sufficient income made available to buy what we produce?

Comment one:

Orthodox economic polices are based on a doctrine, which defines the relationship between income and prices. J. M. Keynes, a British economist, advanced theories on macroeconomics which are still the foundation for policies applied by successive New Zealand governments. In The General Theory of Employment, Interest and Money he states: Provided it is agreed that income is equal to the value of current output all of which is conformable to common sense and the traditional usage of the great majority of economists...

The data presented below would suggest that this doctrine is faulty.

Table One - based on New Zealand Income Survey: June 2011 quarter

 Click Here and go to graphs and data for “Table One”

Comment two:

It appears that New Zealand is reliant on unpaid work. The amount shown in “Table One” is $75.582 billion or an average of $17,162 per person - about 37% of GDP.

Just imagine how the figures would read if all the productive results from other unpaid volunteer work was included in GDP data - work which if left undone would see the social fabric of New Zealand completely fall apart.

It must be noted that table one data has been arrived at by converting June 2011 quarterly data to an annual figure by simply multiplying by four.

Question Two:

If the value of New Zealand’s goods and services produced is greater than the amount of income available to buy those goods and services, as shown in the data above, how do they all get sold? or the reverse, how do they all get purchased?