Monday, 3 February 2014

Business Matters

In the planning for costly infrastructure projects a leading theme is the need for "business" use.  This assumes that it will rise indefinitely and be critical to increasing GDP and economic activity.  In short it will grow itself. 

Indeed if the entire population of the UK could be persuaded to take to the motorways more it would increase spending and boost a number of figures.  But given the technological squeeze on jobs at the top and the sheer inconvenience of much of it will this be the case?

We do not know; we are only guessing.  It will need better IT communication systems, however to persuade business people to give up on the travel.  This youtube item that came from one of the family is great fun if you enjoy a good spoof.  Watch out until the end.

However the cries for infrastructure argue that as well as business there is also the tourist and other travel demand rising inexorably and driving GDP increases in their turn.  This is said to amount to 80% of the total, much more than business.

It may not be so simple as suggested.  The Prudent Bear questions whether this continuing and increasing rise is possible given the overall economic and financial issues.  In a long and closely argued article it gives a survey of the world situation, mainly the USA but with Britain around half way down.

Just how far can we rely on what has been happening in the last decade or two to go on and on into the mid 21st Century?  When the baby boomers have gone who will be able to do the spending?

1 comment:

  1. "When the baby boomers have gone who will be able to do the spending?"

    We'll never know.