UK economy set to grow faster than any other western economy

Graham_Devon

The UK is set to grow faster than any other Western economy, according to a report by the accountants Grant Thornton.

The ICAEW/Grant Thornton report says the recovery is happening among both business and consumer sectors and that companies are expecting growth in exports and business investment next year.

It says confidence in business is at its highest for the 10 years it has been running and has also been the longest sustained period of rising optimism registered.

Michael Izza, chief executive of ICAEW, said: "This quarter's report shows that the UK economic recovery is well underway.

"If it continues at this rate, the UK economy will be one of the fastest growing economies in the western world going into 2014."

I guess this survey and the conclusions really depend on who you ask.

However, taking it as stated, is the UK economy growing faster than any other western economy, pumped up on optimism, a good thing?

I ask because on paper looking no further than that, it sounds promising. But looking a bit further, looking at other economies that have surged forward and the people living within them, it doesn't appear that growing at such a pace helps everyone with severe inequality and living / working condition problems.

BBC seem to like it anyway, reporting with a nice bit of spin added.

http://www.bbc.co.uk/news/business-24799507

michaels

Anercdotal but the local argos only employs on minimum wage 15 hour contracts and if they need more staf they recruit more rather than increasing hours - lovely for argos with a trained flexible pool of staff to draw on but bad nwes for the employees and for the taxpayers who pay tax credit, housing benefit etc top ups.

However if we see enough growth to push unemployment down (and assuming there is not a sudden influx of unskilled labour...) then they will find there is no longer an unlimited pool to hire from and will have to start offering more hours and or higher wages. this will do wonders for the exchequer with most of these people being on 95% effective marginal tax/benefit withdrawal rates.

HAMISH_MCTAVISH

Wow.

You really do try to find a glimmer of misery in even the best and brightest of news, don't you Dev?

Well done there, for wrapping a cloud around every sliver lining.

But I really do struggle to see why you think better than expected growth is a bad thing?

Graham_Devon

HAMISH_MCTAVISH wrote: »

But I really do struggle to see why you think better than expected growth is a bad thing?

I don't and have not stated that anywhere.

I asked whether growing faster than any other western economy was a good thing. As I said, looking at the words only sounds good. But what's driving that growth behind the scenes?

Looking at more extreme examples, the BRIC countries certainly grew at a fast rate, but at what cost to those living within it?

I'm looking for a discussion that goes a little further than tit for tatt mud slinging and twisting and goes a little further than a few headline words.

mayonnaise

Graham_Devon wrote: »

I ask because on paper looking no further than that, it sounds promising. But looking a bit further, looking at other economies that have surged forward and the people living within them, it doesn't appear that growing at such a pace helps everyone with severe inequality and living / working condition problems.

I don't get it.
Surely issues around equality and living/working conditions can be better addressed in a growing economy, rather than a shrinking one?
Or am I missing the point...

Graham_Devon

mayonnaise wrote: »

I don't get it.
Surely issues around equality and living/working conditions can be better addressed in a growing economy, rather than a shrinking one?
Or am I missing the point...

Not missing the point, but maybe not looking at the bigger picture.

The fastest growing economies seem to have the worst poverty, inequality and living conditions. Look at China, India. Look at the Dharavi slum in Mumbai.

I'm not suggesting we in the UK will start living in slums, just using those as extreme examples to draw a picture of the point I'm making, more looking at what Michaels picked up on. The steady decline year on year of wages, equality and living conditions in the UK is certainly noticeable.

Rinoa

HAMISH_MCTAVISH wrote: »

Wow.

You really do try to find a glimmer of misery in even the best and brightest of news, don't you Dev?

Well done there, for wrapping a cloud around every sliver lining.

But I really do struggle to see why you think better than expected growth is a bad thing?

I saw the thread title "UK economy set to grow faster than any other western economy" then I saw the poster. Surely I thought, this must be good news, how come Graham's posting it. Has he turned over a new leaf. Is he joyously applauding this fantastic achievement? I should have known better.

I guess all this good news must be taking its toll.

HAMISH_MCTAVISH

Rinoa wrote: »

I guess all this good news must be taking its toll.

Seems that way.

The attempts at negative spin are getting more bizarre by the week.

Kennyboy66

michaels wrote: »

Anercdotal but the local argos only employs on minimum wage 15 hour contracts and if they need more staf they recruit more rather than increasing hours - lovely for argos with a trained flexible pool of staff to draw on but bad nwes for the employees and for the taxpayers who pay tax credit, housing benefit etc top ups.

I suspect that we will have to start making employers pay NI on all earnings rather than that above secondary threshold (£148 a week). Obviously not in one fell swoop & maybe exempt small employers < 5 employees.

We are basically encouraging employers to provide low paid, part time jobs through the tax system.

What on earth is the point in that ?

ILW

Are these growth figures per capita or just overall?

Kennyboy66

Graham_Devon wrote: »

Not missing the point, but maybe not looking at the bigger picture.

The fastest growing economies seem to have the worst poverty, inequality and living conditions. Look at China, India. Look at the Dharavi slum in Mumbai.

You don't help yourself Graham.

Do you not think China & India are pulling people out of poverty through growth ?

Would you prefer a more equitable level of poverty as seen under Mao ?