by J John Swanko
01/25/10 (People Port) The U.K.'s Chamber Of Commerce Press Release Screams, Stay The Course, however, Hard to overlook a half percentage drop in the U.K.'s GDP. Weather is blamed. I argue it is their drop in exports, until a closer look at the numbers.
The numbers look very bad. As most blame construction -manufacturing was up- production, down. Had it only been weather, one could expect financial services to deliver. Many could point to the early withdrawal of government funding and point to the obvious hole, should have waited. Britain is run by a coalition government. That government had promised a white paper on creating growth. They have yet to show how they will produce growth as they slashed employees, spending.
I work to avoid rhetoric, there is no shortage in the U.K, however, in speech after speech leading up to this bad news, when governments slash demand -government or private- it takes time for the economy to adjust. Add weather events, downturn in exports and the like, The U.K. finds itself in the beginning of a double-dip. Cutting taxes alone have never worked, in to that mess add a credit freeze, problems. This may all turn around on its own should consumer's buying power increase.
That would require decreases in energy, consumables, housing and the like. An increase in unemployment benefits would help. The U.K. and its people want to gain control over its deficit, so the white paper on how to grow would be mandatory. When in crisis, people look to their leaders, While that may be all that is needed, and this economic blip will warm with the weather, What is the downside of stating How? If the U.K. does slide, it can take the E.U. with it.
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Copyrighted, 2011, J John Swanko, All rights reserved. This work is licensed under a Creative Commons Attribution 3.0 Unported, It may not be published, broadcated, redistributed, rewritten, without meeting the terms and conditions.
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