The argument about “economic growth” has been inflamed again
by the latest GDP figures suggesting a marginal recessionary trend. It has given a chance for some grandstanding
by politicians.
The measure of growth is figures based on money flows that
can be calculated. There are two
problems with this. One is that a great
deal of the supposed “growth” for some years now is simply increased money
movements.
Another is that what is calculated can only be what is seen
and accounted for. Given our recent awareness
of the scale of fraud, duplicity and general mayhem in the financial sectors in
recent years, not only is some of it fictitious but there is also a lot simply
not accounted for.
Roughly, it is the modern equipment of the medieval debates
about the numbers of angels that might be found on the head of a pin. Just as medieval thinkers were inclined
either to invent ancient sources for their claims or at least attribute sayings
to more ancient fathers of the church who did not say them, GDP is what you say
it is.
Whether it bears much relationship to what is actually
happening in either the real world or the real economy that provides the
crucial goods and services is another matter.
Given that all our recent “democratic” governments have been long on
policies but very short on truth it is unlikely.
For an item which is not too long and offers an opinion on
the current state of the UK
economy and its prospects see the link from Zero Hedge below. It does not make happy reading.
Essentially, our present government took over a wreck but is
giving up on salvage. Telling the world
that “Britain
is open for business” what it means is that they are selling off what cargo
remains and what valuables might be retrieved.
Blogging may be light for a day or two; there is a pile up
of things to be done. Unluckily, I
cannot spin, quantitative ease or introduce new rules to get out of them.
Hope you will be back very soon.
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