Sunday, August 26, 2012

Going South

I just finished reading Going South: Why Britain will have a Third World Economy by 2014 by
Larry Elliott  and Dan Atkinson. They suggest that the UK has been in an economic decline since after the first world war. They suggest that the UK is slowly moving to be a third world  economy.

The current economy is now just having a few minor set backs, but deeply sick. It was sad to think the UK was once in the lead for building computers.

They point out that the falling pound makes it easier to export goods, but that is only a good thing if the UK had a manufacturing sector of reasonable size, which could sell goods abroad.

They also note that many political decisions are now made to keep current public opinion gratified,
rather than any thought out position.

They point out that for the last twenty years there has been no real economic plan from any Government. Of course that is true, but part of the free market ideology is that nothing should be planned, but that that the market will automatically find the optimal solution. This would be great if that was actually true, but we found out with the banks that the free market idea doesn't work in practise.

So interesting and depressing.

Larry Elliot also writes for the Guardian