fake boom...

planteria

interesting challenges..

Moby

lvader wrote: »

How about....?
relatively weak pound compared to the Euro
Flexible employment laws
Low union membership outside of the public sector
Low wages compared to continental Europe
Relatively low corporation tax
Somewhat stable government
Top universities
English language
London and the Olympics effect
The UK had a deeper recession than most, so more scope for recovery
Population is growing
Most of our debt is in long term Gilts, less new bonds to issue in the short term compared to other large economies.
outside confidence that the government has public finances in control
working relationship with the Chinese
Special relationship with the US

These are the very reason why this country is such a crap hole to live in for millions of disadvantaged people!

DiggerUK

lalman wrote: »

........ atleast 2014 will be a year of 'fake boom'

I have also called it a fake boom, but was criticised that it should more accurately be called a bubble.
I don't see the bubble being quite as dramatic yet as the one that burst when the crisis hit with Northern Rock collapsing, so maybe we should just say that the economy is 'bumbling' along for now.

Haven't we also just gone through the seventh christmas it was all going to be over by ?
..._

lalman

You are right DiggerUK - maybe it just took 7 years for people to forget how we got into this mess in the first place?

I think we have decent universities but the whole system is predicated on debt.

I went to university 6 years ago and left with 9k of debt... and that number is still outstanding due to interest... i have nearly 200 a month taken off my pay packet supposedly paying it off (infact they keep it in a holdings account till the end of the financial year and add on the whole years interest before taking it off)... thus i spend 200 less... thus the economy is 200 less well off not factoring in the multiplier effects.

If you think this is a real recovery then stocks dont look overpriced... property boom is here to stay... but i just can't see it and i disagree with afew of the points made.. this is not a broad based recovery - it is a consumption based recovery based on easing credit conditions which is due to increased appetite to risk.

Milarky

lalman wrote: »

I went to university 6 years ago and left with 9k of debt... and that number is still outstanding due to interest... i have nearly 200 a month taken off my pay packet supposedly paying it off (infact they keep it in a holdings account till the end of the financial year and add on the whole years interest before taking it off)... thus i spend 200 less... thus the economy is 200 less well off.

I didn't know that's how student loans are worked out. We need Australian-style student [STRIKE]loans[/STRIKE] mortgages, clearly.

lvader

grizzly1911 wrote: »

Not where we buy the bread from a popular German supermarket.

Let me guess, it's cheaper?

lvader

Moby wrote: »

These are the very reason why this country is such a crap hole to live in for millions of disadvantaged people!

Cheap labour helps the economy, it least these jobs are available in the UK, in other Euro countries you'd just be unemployed and not necessarily getting any benefits.

bigadaj

lvader wrote: »

Cheap labour helps the economy, it least these jobs are available in the UK, in other Euro countries you'd just be unemployed and not necessarily getting any benefits.

Economically rather than morally speaking then that's correct assuming a closed labour market, however what's happened in the uk over the last decade is that the cheap labour has been undertaken by immigrants, with the unskilled uk workers able to survive on benefits. This does little to help the wider economy and just it's pressure on limited resources. This isn't the fault of the immigrants who are generally hard working and looking to improve their situation but simply a consequence of government policy, or lack of policy or thought at the time.

lvader

There are plenty of UK natives on low paid jobs and there is still a big difference between the 12% average unemployment in the Eurozone and the 7.4% in the UK.

bigadaj

lvader wrote: »

There are plenty of UK natives on low paid jobs and there is still a big difference between the 12% average unemployment in the Eurozone and the 7.4% in the UK.

It depends how you measure it.

You can split the eu into two, or probably three, and the direct uk comparators are Scandinavia, holland, Germany and maybe one or two others.

There is chronic under employment in terms of people taking part time or often zero hour contracts, and unemployment is measured in different ways, look at the difference between the claimant count and those really seeking work in the uk, and similarly different figures exist for most countries.

Bottom line is were still not building or making things in sufficient quantities which is damaging our economy.