GDP

It is most interesting to note Our Dear Finance Minister (and strangely, Our Dear Premier is nowhere in sight) praising up the provincial GDP:

The GDP forecast for this year has been revised upward to 8.9 per cent from 8.5 per cent because of stronger domestic demand, as evidenced by solid gains in retail sales and housing starts.

And not for the first time. As Minister Marshall noted in February, shortly after Williams Government ended Our moratorium on any discussion of the Gross Domestic Product:

Retail sales are up at the highest level ever, incomes are up, our credit ratings have never been higher, we are leading the country in labour productivity and GDP growth, and with more of our people working than ever before.

Interesting, and, in the Church of Danny, entirely heretical:

Premiers Tobin, Tulk and Grimes have all heralded the fact that we have been leading the country in GDP growth? What a smoke screen that is!

What does GDP really mean? By definition it means the value of all goods and services produced in the province during the year. But always remember something about GDP: it means the value of what is produced in the province not the value of what stays in the province.

Bobby Kennedy defined it best just before his assassination in 1968 when he said "GDP means everything ... except that which makes life worthwhile." [Board of Trade (2001) 11:1]

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"After thirteen years in office, the Liberals have nothing to show for their efforts but decline. All the GDP growth they've been boasting about isn't generating a single dollar of new revenues for the province. Ths budget's revenue situation reflects what we're seeing in the latest census figures: that Newfoundland and Labrador is in sharp decline," said Williams. [Press Release (2002) 3:21]

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However, when I hear the Minister of Industry, Trade and - and I did refer to him as the Minister of Industry, Trade and no Rural Development, and I apologize to him for that. That was done in debate, and I should have said the Minister of Industry, Trade and very little Rural Development. Anyway, every time he gets on his feet, he talks about how wonderful things are. How great he art. In fact, he talks about the GDP, and how we have the highest GDP in the country in GDP growth. He talks about the strength of the economy. He talks about how employment numbers are going up. What does that mean to the ordinary, average Newfoundlander? I cannot believe that he stands on his feet and talks about how great things are and how wonderful things are.

Oil and gas: Our oil is the greatest contributor to GDP. What does that mean? It means nothing. They put it on a ship and it leaves Newfoundland and Labrador. It is not processed here. Nothing happens to it here. It drives up our GDP number. So what? It comes in, it goes into holding tanks in Whiffen Head, and then it is shipped out. It is not processed in this Province. Gone! [Dansard, (2002) 3: 19]

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Mr. Speaker, the problem is, we have had to sit here for two sessions of this House of Assembly and see the former Minister of Rural Development, and current minister, get up and talk about how wonderful everything is in this Province. How great thou art. How wonderful everything is in this Province. Jobs are being created everywhere. The GDP is going through the roof. Everything is wonderful.

Now, Mr. Speaker, if I may move on to GDP - and I will not deal with this at any great length because it was handled very capably by the Opposition House Leader during Question Period. Bobby Kennedy said before his assassination, "...GDP measures everything except that which makes life worthwhile." No truer statement was ever said. We have had it shoved down our throats for the last four years.

When Premier Tobin was here, he heralded the GDP. It was the greatest thing since sliced bread. The GDP is going up, leading the nation, our worries are over; highest GDP again this year. Don’t worry about it Newfoundlanders and Labradorians, as long as that GDP is going up we have no problems. It is a meaningless number. It is smoke and mirrors. All it does is mislead the people of Newfoundland and Labrador. Ask the people in Gaskiers what the GDP means to them. Ask the people in Ramea what GDP means to them. Ask the people in La Scie or Rushoon what an increased GDP means to them. It means absolutely nothing. Ask the 40,000 people who have left Newfoundland and Labrador what GDP means to them. It is absolutely meaningless. [Dansard, (2002) 5:21]

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Our government boasts that we have led the country in GDP growth in three of the past five years, but what do Newfoundlanders and Labradorians have to show for it? They had the highest rate of unemployment in the country, at 18 per cent. They have among the highest per capita debt, the highest out-migration and tax burden in the country, and they have among the lowest per capita income, birth rate and fiscal strength. [Dansard, (2003) 3:19]

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We hear today about the wonderful GDP, how our Province is growing, how we are the toast of the country. The Globe and Mail is talking about the great GDP we have. What does that mean to the fishermen in the gallery? It means absolutely nothing, because their lives are being devastated by this particular closure and how the government can get up and talk about a GDP. We have to talk about what is important to the people of Newfoundland and Labrador. [Dansard, (2003) 4:30]

The Word of Our Dan. It is written.