Are you worried about the UK economy?

Question

On a macro level it appears rather robust with growth at 2.1%.

BUT for medium and small businesses costs are escalating. This is a major worry as these sectors are the most economically robust and provide the greatest employment.
Contrary to all government propaganda- small and medium sioze businesses employ far more people than corporations, contribute far more revenue and are not subsidised anywhere near as heavily

Furthermore, CPI and RPI indexes are higher than the EU, wages are Negative in real growth so far this year (4.0%well below retail price inflation of 4.5%+ in April) + rising food prices reducing income for mortgage. Annual food price inflation reached 6.0% in April, highest in 6 years."

HPI has it 10%, slightly down and we have a new national historic house price high, most especially when expressed as a ration of real earnings.
Interest rates are predicted to rise 0.25% in 2007.

Thus- very unhealthy prospects for all consumer based economy.

Your thoughts?

Answer 1

Forget the percentages, they hide the truth. Our economy is in decline. If we didn't have the market force with housing then the whole thing would go down the drain. This has already happened in America - look for the market results on the Wolsley Group - one of thie largest players in home improvement in the States. They have already layed off and are continuing a programme to lay of even more THOUSANDS of staff. In the uk the company are generally known under the names of plumbcentre and buildcentre and draincentre. Already their branches are showing signs of decline and in fact the whole industry will do so for at least three more months. This is reasonably normal given the holiday period, but it will pick up marginally due to the unfortunate/fortunate problems with flooding - every cloud has a silver lining for someone - this is reality - even though i don't particularly like this one. However, take out the housing market and what are we left with ? Investments. That's it folks! Precious little production of anything else in the UK! How many years will it take before the true tradesmen will have died off , and their skills in all sorts of production now going to China and Indonesia because of the lower labour costs, will have died with them ? In real terms no more than 30. Is this what we have become ? The greatest trading nation and the true father of democracy and with the mother of parliaments - subservient to a Europe made up of nations who allied against us or had to be freed by us at a horrendous cost to the young men and women from our once Glorious Nation ? We have been led through the nose by the masters of spin, the windbags of westminster, the smoke and mirrors of team Blair and now Brown and their ilk for too many years. None of them have or ever could run a business profitably! Yet, they would teach us all how to pay tax AGAIN, and AGAIN and AGAIN! Our economy is 'shot to hell!'

Answer 2

The truth is ,he doesn't know any more than you or I. His job is to sound up beat to try to instill confidence and hope for the best. Governments don't make countries , its citizens do.the entrepreneurs, the risk takers, the professional people , the skilled tradesmen & so on. If because of the hardwork of the aforementioned groups the Country prospers the government will take the credit. If, however things spiral downwards they will blame ,world events, the mess they inhertited from the "previous lot"or anything but themselves. When asked awkward questions watch them squirm, twist & slither like eels.Britian's economy is ,like America's based on high levels of consumer spending/debt which , dispite what the chancellor or the Prime Minister says places it in a very vulnerable position as opposed to , say ,Germany whose economy is founded on a stong manufacturing base made up of lots of small to medium companies. This is also good because if a number of these small manufacturing firms should go bankrupt the result is much less devistating than if one or two industrial giants close down throwing tens of thousands out of work. The Germans are still the smartest boys on the block.

Answer 3

Well on the face of it, the UK economy is quite healthy and has been so for some time now. GDP growth is good, inflation is low, unemployment is low and the balance of payments is sustainable (albeit negative).

Really the government should do more to increase productivity so it rivals the United States. It also should privatise more industry and move away from a neo-classical model and adopt Austrian economics.

Answer 4

If the corporations profits were restricted so as to ease the load on small business it would help. A tax of say 30% on all profit going out of the country to foreign mulinationals. British companies to invest in Britain not all over the worrld.

Answer 5

With Alistair Darling as the Chancellor of the Exchequer, YES, I am very worried about the economy.

Answer 6

The increasing interest rates are the biggest threat to the economy People with less money to spend affects production creating unemployment and the whole house of cards collapses

Answer 7

I am worried about a lot more than just the econmy.

Answer 8

No, its stronger than its been in a long time. If people can resist the urge to be too greedy then it should be fine.

Answer 9

If you are not you should be. It's knackered thanks to the Blairina and Clown Brown

Answer 10

i don't have any money so i've no need to worry.