AUSTERITY FOR SOME AND NOT OTHERS


Govt WasteI was taken by The Taxpayers’ Alliance’s (TPA) observation about the latest growth figures for the UK economy.  I’ll let the TPA’s Chief Executive (Matthew Elliott) speak for himself:

“Yesterday the Office for National Statistics (ONS) announced that they think the economy is growing again – by 0.3% in the first quarter of this year. You should take these statistics – good or bad – with a pinch of salt. But the breakdown of growth by sector does undermine lazy claims that the economy is in trouble because of cuts in government spending. Whereas the ONS data shows that manufacturing has shrunk by nearly 7% since 2008 and construction has shrunk by more than 15%, “Government” has grown by 6.9%. The real austerity has been in the more efficient private sector, not a still bloated public sector. Is it any wonder that the economy isn’t growing?”

No, it’s no wonder at all.

——

‘Real austerity has been in the private sector’: http://tinyurl.com/chsqdql

 

2 comments

  1. mark deacon · ·

    A bit long hope you don’t mind but my perspective.

    “Manufacturing has fallen YOY for the fast few decades that even if you were to increase it by 100% it would be insignificant to what is needed in the grand scheme of things.”

    The rebalancing that Merv the Swerv kept mentioning “will not happen” until we fall low enough (means at least as cheap as lower cost countries) to then start to regrow. For me that is one heck of a long way down and by time you reach it existing debt would be unserviceable based on incomes. This whilst an ever increasing efficiency in all things works against you, because under such circumstances you cut costs and do not spend more if the return drops.

    This has been all the previous recessions in my lifetime with really only the efficiency part.

    Now add these parts to the above and the game gets very interesting.

    A Chinese minister a year or so back openly admitted they were keeping factories open to keep people in work. Now add in Japan wanting to increase its output and try to stem its runaway debt pile just another front on the battle to prevent a default. Any nation finding itself in dire financial straights will exploit any difference in values under the guise of free trade.

    Like

  2. Bickers · ·

    This ‘growth’ can only be achieved by taking on more debt. It’s clear what needs doing. A massive reform of the supply side to make the UK the most competitive economy in the World. This will mean the destruction of corporatism that’s eating away like a cancer at the heart of our so called capitalist system, the ditching of vast swathes of anti capitalist red tape and the demolition of most of the public sector. There’s no reason why the State should be taking more than 25% of GDP to fund ONLY the most necessary public services.

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