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UK has fastest growing economy of the developed world
Comments
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Thrugelmir wrote: »With 60% of the UK economy dependent on consumer spend. The concensus view is that the the recovery as it stands is unsustainable. Not least that the growth is funded by debt. Despite over 5 years of record low interest rates the UK consumer owes more than at the time of the GFC.
It's the UK's menatility which is out of touch with reality reading much of the media commentary. At some point we're going to come unstuck while others plod by.
The whole point of an economy is that people make things to be consumed: consumption is what it's all about.
If people didn't consume what you make you'd be unemployed and unable to consume.0 -
pay rises all around?
i could certainly use one0 -
looking forward to being self employed when not in the doldrums (started 2010) !!!!0
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Hoping to see Devons response to this.Official MR B fan club,dont go............................0
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The whole point of an economy is that people make things to be consumed: consumption is what it's all about.
If people didn't consume what you make you'd be unemployed and unable to consume.
UK imports to consume though. All part of the wider problem. Only so many assets to sell.
UK have the commodities to export that Oz does to balance the books. Though I see prices have slipped this year. Which is making the picture down under less rosy.0 -
mayonnaise wrote: »Wrong.
If there's a switch to debt repayment. Then consumption will fall and so will economic growth. Given the UK's dependence on the consumer sector.
If consumption falls then so will tax receipts (i.e. VAT).
No one said it was going to be easy.
You can't have your cake and eat it.
Right.0 -
Thrugelmir wrote: »UK imports to consume though. All part of the wider problem. Only so many assets to sell.
UK have the commodities to export that Oz does to balance the books. Though I see prices have slipped this year. Which is making the picture down under less rosy.
assets are continually being created
there isn't a fixed amount : if there were, there would now be none left0 -
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Thrugelmir wrote: »UK imports to consume though. All part of the wider problem. Only so many assets to sell.
UK have the commodities to export that Oz does to balance the books. Though I see prices have slipped this year. Which is making the picture down under less rosy.
It's a reasonable point however I suspect that the official data are understating the value of services sold abroad.
Don't forget that getting back to a trade balance will be far more painful for Germany and China than for Britain. They have built their economy on not paying their workers enough to consume what they make. As soon as they pay their workers more realistically they will face massive unemployment problems.0 -
getting back to a trade balance will be far more painful for Germany and China than for Britain. They have built their economy on not paying their workers enough to consume what they make. As soon as they pay their workers more realistically they will face massive unemployment problems.
Spot on....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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