Comments on: Back in black with Britney – but what does that really mean? http://larvatusprodeo.net/2007/03/09/back-in-black-with-britney-%e2%80%93-but-what-does-that-really-mean/ Life, Culture and Politics from BrisVegas Tue, 14 Feb 2012 10:11:31 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Uncle Milton http://larvatusprodeo.net/2007/03/09/back-in-black-with-britney-%e2%80%93-but-what-does-that-really-mean/#comment-196698 Uncle Milton Fri, 09 Mar 2007 02:20:32 +0000 http://larvatusprodeo.net/2007/03/09/back-in-black-with-britney-%e2%80%93-but-what-does-that-really-mean/#comment-196698 The number wasn't even about economic growth, that is, how much was produced in NSW in the December quarter, aka gross state product. It was about "state final demand", which measures how much was spent by people in NSW. State final demand leaves out exports (stuff that is produced in NSW but bought by people outside NSW) and includes spending on imports (stuff that isn't produced in NSW, like cars made in Victoria and plasma TVs made in China). Economically, state final demand means very little. Costa would have been advised of this, which could be why he played it down. But politically, it seems to have done the job, from Iemma's point of view. "December quarters are in any case traditionally strong thanks to Christmas and post-Christmas sale shopping binges." The number excludes the effect of Christmas shoppibng, as it is "seasonally adjusted". The number wasn’t even about economic growth, that is, how much was produced in NSW in the December quarter, aka gross state product. It was about “state final demand”, which measures how much was spent by people in NSW. State final demand leaves out exports (stuff that is produced in NSW but bought by people outside NSW) and includes spending on imports (stuff that isn’t produced in NSW, like cars made in Victoria and plasma TVs made in China).

Economically, state final demand means very little. Costa would have been advised of this, which could be why he played it down. But politically, it seems to have done the job, from Iemma’s point of view.

“December quarters are in any case traditionally strong thanks to Christmas and post-Christmas sale shopping binges.”

The number excludes the effect of Christmas shoppibng, as it is “seasonally adjusted”.

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