Kerre Woodham: It's the economy, stupid

"It's the economy, stupid," is a catchphrase that means the primary concern of American voters is the state of the American economy and how that economy affects their personal finances. It was a phrase coined by a strategist in Bill Clinton's successful presidential campaign, and it's pretty much what Christopher Luxon campaigned on in 2023.  

The Labour Government were, and I paraphrase, incompetent economic vandals who had done incalculable damage to the New Zealand economy and only by electing a National Party into government could New Zealand's fortunes be restored. That was pretty much the narrative going into ‘23. Add to that a little bit of light law and order and education and you had the election campaign. Three years on we're heading into another election, and the economic headlines are grim. Example: ASB economists have joined Westpac in forecasting that the economy will contract in the second quarter of the year. Households are only just starting to feel some relief according to ASB's chief economist Nick Tuffley. Higher fuel prices are now squeezing budgets again. That pressure will be felt right across the economy.  

Here's another headline: Finance Minister Nicola Willis has revealed inflation is set to go much higher this year and sit outside the Reserve Bank's target band of 1 to 3%. Here's another: Prospects for a recovery in the labour market this year appear to have dimmed with any decline in the unemployment rate looking more like a story for next year. Infometrics said any signs the economy was starting to recover would most likely be put on hold. Here's another: Wattie's factory closures, boss blames soaring manufacturing costs. Contrast that with Christopher Luxon back in 2023 and his bullish promises that help was on the way, first when he was speaking to me in July. 

“It's going to be a big turnaround job because I think actually we've got a great country but a lot of it is going to be pretty decayed by the time we get there in terms of health, education, housing, the economy, law and order. But that's why I've got my team working on that right now because when we get there, we're not forming steering review, you know we had what was it, 230 working groups to do reviews of stuff. We're going to be ready to go on day one and we're going to have to move at 100ks an hour.  

“So we will have to be really, really clear about the things that we need to transform and actually step up and change a lot and it is going to be education, it is going to be healthcare, it is going to have to be the economy, making sure we're making every dollar count and get a payback for it.” 

And this was Christopher Luxon in November: 

“I don't want people to give up hope. You know, we can actually get to a better and a different place from where we sit today, but we do have to go to work now and we have to go sort out the challenges and we have to realise the opportunities we've got in front of us, and we have to be straight up about it and get it done and get the country turned around.” 

Hmm. Have they? No. They won't be able to campaign on that. Is some of it due to external forces like the fuel crisis? Absolutely. But there were no caveats in the promise that things would turn around and things would get better. Could Labour have done any better? Hell no. I mean they'd already shown they can't cope in a crisis other than throwing money around and locking people up. They simply have no answers. Thank God they're not the government right now otherwise we'd all be working from home and homeschooling the kids because of the fuel crisis or strong winds. But when you look at the polls and you wonder to yourself how on earth could anyone possibly see Labour, the Greens, and Te Pāti Māori as a viable government, what you're seeing are voters who were promised much and have yet to see the delivery. 

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