The economic news is far from good.
The so-called recovery, is primarily founded on a property bubble and people running down their savings to replace items that can’t be deferred any longer. What’s more, the workforce has grown since the coalition came to power, so you would expect total output/ consumption to increase.
Look at the balance of trade deficit (at an all time high since the ‘recovery’ began). Look at corporate investment (still bumping along the bottom in most sectors). Look at public spending cuts, which added to the recession and the rapid hike in national debt under Osborne: they are only about half way through. Public services will be unrecognisable if the Tories win the next election. Fortunately, with UKIP splitting their vote, they almost certainly won’t.
As for today’s news on earnings and inflation, CPI is meaningless as a measure of the cost of living. Governments like it because it expressly excludes housing-related expenditure, such as mortgage interest payments and rent.
Average earnings increases are equally meaningless, if, as is generally the case, top earners’ pay increases far faster than people on lower incomes.
As for reducing employment, the TUC says that 540,000 of the jobs created since 2010 are self-employed roles, with the over-50s in the majority and over-65s the fastest growing group. Morgan Stanley reports that 80% of all employment gains since 2007 are in self-employment. The majority of these are not building new businesses, they are trying to stay afloat in a market where decent jobs are declining.
The great majority of people are stilll getting poorer under the government of millionaires, and the fundamentals of the economy are getting worse rather than better.
The reason the public is not embracing this news is because it’s not robust evidence of a real economic recovery, it’s media propaganda of dodgy, noisy statistics. If and when Cameron orchestrates a genuine economic recovery, will be sure to get credit for it. But don’t try to hoodwink the public into giving credit where none is due.
|Juno for your news|
|You cannot trust the mainstream media|