Here’s the BBC’s take on the economy:
We’ve got some really good growth….but it’s based on Services….which means ‘consumer spending’ the BBC tells us…which, as consumers have no money (cost of living crisis!) and no savings, must be funded by borrowing…which is unsustainable…therefore the recovery is built on sand….it’s the wrong sort of growth!
Trouble is…’Services’ doesn’t just consist of Retail…Services are an industry in their own right…We were told they don’t produce anything today by a BBC ‘expert’ journo….which of course is bollocks….what would you call software (Microsoft), art, music, media, education, mechanics, designers, architects….even journalists? They all produce a product….and apart from that, ‘Services’ must service something…presumably at the request of somebody who needs them…..like ‘Industry’ which produces the physical products….which might suggest those industries are also picking up.
And as for ‘Retail’…well it has to sell something…therefore it has to have a product…one made in a factory, designed by someone, transported by a man in a lorry, put on the shelves by shop staff…and as for the money to buy it…who says it comes from borrowing?…where is the BBC’s proof? So far it seems just a statement of ‘fact’ based purely on wishful thinking (on Mickey Clark’s part) and speculation.
Never mind that retail isn’t booming to any great extent….we heard that people are still being very careful with their money and doing their research for the best prices before buying…doesn’t sound like an irresponsible rush to bankruptcy does it?
Curiously the BBC (and Labour) ignore the businesses that say, and have been saying for a longtime now, that in fact they are doing very well thankyou and they think the future looks bright.
Phone in after phone in on the BBC businesses say they are doing well….I haven’t heard a negative one yet.
And what of that great employment puzzle that the BBC always raised to cast doubt on the ever rising employment figures (as well as dismissing them as part time, temporary, or low grade)? You know, the BBC says….it is just inexplicable that employment is going up in a such a terrible recession.
They did speculate momentarily that it could be that the economy was in fact doing much better than the figures suggested…but they laughed that off.
The answer they decided was that industry was unproductive, underperforming.
But that raises the question, yes employers might want to keep on skilled staff on lower wages (which of course means they are still productive…as costs go down), but why would they employ more if they were already so unproductive with underemployed staff?
The answer of course, if the BBC had cared to ask, is that many businesses were doing well and so not only kept on staff but employed more…and new businesses started up also employing more people.
Today we heard of a website design company that started up in 2009, right at the heart of the bust…..it initially employed 4 people…so that’s 4 to start with…it now employs 13.
How many more of these small companies stared up and succeeded…must be many out there providing those ‘mysterious’ jobs?
The BBC didn’t bother seeking out the answer because it didn’t suit the narrative that the employment figures, and the economic success that suggested was all smoke and mirrors about to collapse as Plan A and Austerity ‘kills the patient’ as Evan Davis (amongst others at the BBC) kept telling us it would.
What really amuses me is that Micky Clark on Wake Up To Money bangs on relentlessly that this is a recovery based on low interest rates and easy credit funding an unsustainable consumer boom and a housing bubble….which he tells us ‘is what led to the recession in the first place’….you can question his analysis of the present growth but he ain’t wrong about the cause of Labour’s ‘Great Recession’….and it wasn’t the fabled Cable’s ‘Casino Investment Banks’…it was retail banks (like RSB and Northern Rock) lending out too much money and doling out cheap mortgages to people who couldn’t afford them, here and in the US, who laid the foundations for the bust.
…the truth is out there then……but strange he never mentions who was responsible for all that cheap credit and slack regulation of the financial services.