All Chancellors of all parties do, without exception, sing their own praises. It goes with the job. George Osborne will do it today. But here's the real tale of the UK economy, care of the Guardian:
So far UK GDP per head has not recovered from the 2008 crash. Yes, it's improved of late - but that process is markedly slowing now - but we're still not where we were. And we are a massive distance from recovering the lost ground that almost every other economy is now making good on.
What's the big difference? Austerity, of course. The periods of good news in this graph are 2009 - 2010, when Labour sought growth, and 2013 on when George Osborne turned off austerity but not the austerity rhetoric. If he now turns the reality of austerity back on again we will, inevitably, see GDP growth fall back. That has to be the case. If the government cuts spending and no one else increases it (and there's no sign anyone else is really willing to do so) GDP cannot increase and could fall.
It's not a pretty picture.
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Richard – “Yes, it’s improved of late — but that process is markedly slowing now — but we’re still not where we *are*”
“Where we were?”
Sorry – too much haste
Will correct
Actually, “We are still not where we are” is more appropriate given the misinformation and econo-fables that govern the discourse!
I love how all the left wing economists have moved to GDP per head as the economy has recovered………just out of interest what is the next minor measure you will move to after GDP per head recovers as well?
And what is wrong with GDP per head?
On the assumption that you’re a man of the right (besides your words, that they usually fail to adequately identify themselves is a telling indication), the three words pot, kettle and black seem appropriate when it comes using whatever measure, real or imagined, that supports a particular case.
So what from of measurement it eh “truth” then -come on, lets have it! The Tories changing the measurement of poverty as the next round of benefit cuts come in?
The apparent “recovery” has largely been based on people going into debt; either on the equity of rising house prices, pulling out their savings or debt to payday lenders.
QE has kept interest rates on the floor. Selling off everything that isn’t nailed down has helped the figures, too.
But this can only be sustained for so long. Debt is paid back and spending in the economy is markedly reduced.
Investment is still pretty non existent. If business is not going to invest, then government will have to. It refuses to.
So the economy is paying the price.