It is strange; the UK banking system fails and the UK government commits 90 percent of GDP to keep the sector from collapsing. Meanwhile, UK manufacturing goes to the wall; it is 12 percent down compared 2005, and government watches silently.Why is that?
(Here is a nice post from JKA looking at this series across previous cycles. As JKA puts it "Comparing the cycles, the slow down is clearly surpassing the recession of the 1990’s but is yet to equal the drastic manufacturing shut down of the 1980’s. It's getting close!")
6 comments:
Banking keeps THEIR BtL empire afloat.
Industry only keeps the peons in jobs, and that makes them less likely to vote labour.
To be a horny handed son of toil is still stigmatised.
"I'm going to get a little man in to fix the boiler."
Incredibly I've heard this sort of condescending talk quite often - from people who are deluded enough to believe that they're middle class.
Be it middle class left/ middle class right ... faux middle class - whatever ...
... they instinctively look down on a man in a boiler suit.
The UK thinks Stirling is a major international player, but we just don't have the GDP to back up it any more, not compared with the other players.
Look at it this way, we are a very small country, few natural resources with a small population and massive debt.
We are paying the price of thinking that Stirling can compete against the USD/EUR on the International stage.
Things are getting nasty in the UK manufacturing sector. It is odd, really. Manufacturing dies, but banking lives on.
12 straight months of declines.
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