UK economy growing, UK parliament flatlining

Jeremy Warner in the Daily Telegraph lifts the lid on the UK economy to show that it has been booming since before the present government came to power in 2010 announcing that we were still in a recession which justified their austerity plans. He quotes Prof. Jonathan Haskel of Imperial College Business School who was on the BBC Radio 4 Today programme at the end of April announcing the same good news (or bad, depending whether you’ve got political capital invested in the austerity narrative). Warner makes the interesting observation that India’s information economy has taken off because their government didn’t realise it and didn’t therefore ‘wade in’ and muck it up, and the UK economy is doing so well for similar reasons. The government and opposition are anguishing over their failed ‘old economy’ steel-and-concrete vanity projects like HS2, construction booms, and hub airports and leaving the real value creators alone to get on with things. ¬†Amazingly, this is why the Industrial Revolution happened in the first place. The UK landowning governing elite 200 years ago was so obsessed with agriculture that they ignored what the religious dissenters – excluded from all government jobs – were doing and thus let them cause a revolution by forcing them to earn a crust through the despised ‘trade’. Conservative grandee and industrialist Lord Heseltine complains that the government is completely out of touch with industry. I say, let it stay that way. It’s the UK’s great strength.
This blog first spotted signs of Professor Haskel’s breakthrough in January 2013 (see ‘Productivity Puzzle’ download on right) and Izabella Kaminska on the FT blog publicised us. The Daily Telegraph (not a noted radical organ) has now taken it up and also agrees with this blog’s earlier conclusion that there was no double dip recession, contrary to government and opposition’s cherished beliefs. This blog started because a jaded management consultant/historian couldn’t understand how the Governor of the Bank of England could say that it was impossible to reconcile employment and GDP figures. If the blog helped to publicise the work at Imperial College then there may be something in this world wide web thingy after all.

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