This chart is from the Office for Budget Responsibility's budget report:
Note the second of these two, on the right hand side. By 2027 the Office for Budget Responsibility thinks we will still be worse off in real terms when it comes to wages than we are today.
If that is their best hope - and most of this forecast is wildly optimistic by them - then we really are in for economic trouble. You can't have six years of depressed earnings and the growth on which the Tories are hanging their hat, rightly or wrongly. Consumption drives too big a part of the UK economy for that to be the case.
I stick by my forecast of a deliberately created recession.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Recession = crises
Crises = justification for change and ‘difficult decisions’ & ‘manufacturing consent’
Change = even less than we had before.
So are you saying by a deliberately engineered recession that they want a recession? Or the recession is a by product of ideology?
In this case, both
What, in your estimate, does this government stand to gain by inducing a recession? This seems odd. I’m quite prepared to believe (as a financial ignoramus) that it is ideologically driven; we’ve seen that sort of thinking far too many times before. But what is their internal logic for wanting it?
It is necessary to maintain inequality
Inequality – and one of the key points of “The Spirit Level: Why More Equal Societies Almost Always Do Better” by Kate Pickett and Richard Wilkinson was that equality is broadly and measurably better for ALL, not just those at the bottom.
This is where there might be a lot of consciousness-raising opportunities to be had, with joined up thinking and activity combining cutting edge economics with social sciences, and beyond.
Perhaps given enough exposure, even those who vote for unequal society may realise they depend on the same emergency services as everyone else.
Not sure if links are permitted here :
https://equalitytrust.org.uk/resources/the-spirit-level