9 Sep 2013

This Recovery

From Prime Economics on Twitter: "About this recovery.
  • US jobs flat
  • BRICS slow
  • German trade & indust flat
  • EZ flat/down
  • UK trade down, industry flat
But House Prices up!"

Could add wages falling, zero hours contracts taking over real jobs, chronic underemployment, static 7.8% unemployment. Residential rents, food and energy are all rising faster than average inflation. Savings are falling.

But worst of all UK private debt is rising:




Graph by 3spoken: UK Sectoral Balances and Private Debt Levels - Q1 2013. All credit to the author Neil Wilson. As he says "The UK is back on the borrowing drug."

This is not a recipe for economic success. If this is a recovery then it is very narrowly based on rising house prices. So yeah, rising GDP is a good thing (while we rely on an infinitely expanding economy to sustain our standards of living) but its not accompanied by other more encouraging signs.

1 comment:

  1. At the moment there is an European Initiative for Basic Income trying to get 1 million signatures to force the European Parliament to study this proposal but no one is talking about it. https://www.youtube.com/watch?v=zru79jcVTt4
    Perhaps you would consider doing a post about this economic alternative that aims at minimizing the economic disparity and simultaneous eradicating poverty.

    ReplyDelete

Keep is seemly & on-topic. Thanks.