Secular stagnation: the dark cloud hanging over the world economy













We live in interesting times.





2 thoughts on “Secular stagnation: the dark cloud hanging over the world economy”

  1. The British Chambers of Commerce is clear that the UK economy is way off track (,-not-more-wasted-opportunities.html + the interview with the BCC Director on BBC Radio Four “Today” this morning). He emphasised how the Tories, like an alcoholic picking up the bottle again, have no real policies beyond fuelling consumer spending and debt (already, as you point out, at record levels) and basically hoping that,as promoting the UK as “China’s Best Friend in Europe” (honest!) “something will turn up”. “The March of the Makers”, “rebalancing the economy”, reviving world-class manufacturing, developing educational provision to ensure young people actually have the SKILLS and attitudes to take up employment (e.g. in construction, where we are facing a skills shortage which is absolutely nothing other than a national disgrace) have all gone the way of “hug a hoody”, “husky sledge rides” and “the greenest government ever”. What we have facing instead is months and months of division and vitriol over the EU (virtually in melt-down in terms of the the vision devised by the Mandarins of Brussels since the 1980s in any case (and likely to implode entirely if the UK does vote to leave ( > massive, massive boost to the likes of le Pen in France, AfD in Germany, Catalonian separatists (via SNP), Orban in Hungary etc. etc. and monumental threat to what is still the largest single market in the world).

    1. The typical reaction of national governments to world economic problems is to try and be amongst the minority who buck the trend, mainly be exporting more. This is in pieces in the UK. But I think the critical thing about the UK economy is the stratospheric level of property prices in the SE. The government has no answer to this apart from hoping that prices do not fall…

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