Since the end of World War II, we have continually faced economic boom and bust, on average every 8/9 years. Sometimes we blamed current government policies and lack of an industrial base. Since the late 1960’s we have continually shifted our emphasis to service industries and insurance. We could get away with that as long as China, India, Thailand, Brazil, Philippines and other developing countries economic structures were not so strong. We always captured the lost markets and emerged from bust to boom. So whatever industries we had, we could satisfy domestic and overseas demand and bolster the economy again.
This time the economic outlook is very gloomy. India, China, Brazil and other nations have developed their economies. They can export their goods and services to the world market place cheaper without sacrificing quality and delivery. Bankers' bonuses and greed have destroyed the national coffers of the US, Britain, Ireland, Germany and other G7 countries. The Prime Minister and Bank of England have approved the quantitative easing approach to liquidity, so that Banks can start lending to businesses and home buyers. Effectively Britain has resorted to printing money, which means pound in our pockets has been devalued. The present government has blamed the world downturn but the bulk of blame must fall on Tony Blair and Gordon Brown as they borrowed money in good times and did not make any provisions for bad times. Gordon Brown, when Chancellor of the Exchequer, said that he had abolished boom and bust. His tax credits have benefited single parents and penalised couples living together. His policy means if you have worked hard and saved some money for the future, you are excluded from home help, tax credits and other support. If you have not saved anything and never worked you are entitled to all benefits. When he abolished the married couples allowances he devalued the institution of marriage.
This time the economic outlook is very gloomy. India, China, Brazil and other nations have developed their economies. They can export their goods and services to the world market place cheaper without sacrificing quality and delivery. Bankers' bonuses and greed have destroyed the national coffers of the US, Britain, Ireland, Germany and other G7 countries. The Prime Minister and Bank of England have approved the quantitative easing approach to liquidity, so that Banks can start lending to businesses and home buyers. Effectively Britain has resorted to printing money, which means pound in our pockets has been devalued. The present government has blamed the world downturn but the bulk of blame must fall on Tony Blair and Gordon Brown as they borrowed money in good times and did not make any provisions for bad times. Gordon Brown, when Chancellor of the Exchequer, said that he had abolished boom and bust. His tax credits have benefited single parents and penalised couples living together. His policy means if you have worked hard and saved some money for the future, you are excluded from home help, tax credits and other support. If you have not saved anything and never worked you are entitled to all benefits. When he abolished the married couples allowances he devalued the institution of marriage.
Returning to the present recession, I think it will take more that 2 years to recover. Many jobs are taken by migrant workers on low wages. Some people do not want these jobs as they can get more money in benefits. In addition, we have lost or sold most of our manufacturing industry and are not in a position to compete.
North Sea oil and gas revenues have been squandered. A lot of the infrastructure needed to be updated or renewed. Whether it was Norman Lamont or Gordon Brown, they all put dogma before the country's needs. When one creates an economic bubble and then it bursts, it's always the people who put their faith and trust in the political parties who suffer most.
Parties of all colours should sit down together and formulate a plan of national recovery. They blame each other and again the slinging match has begun and we are back to square one!
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