The Cost of the Olympics and The Recession

Britain is now out of recession and that is good news. Preliminary figures show a third quarter growth of just 1%. Some commentators put the growth down to the Olympic Games ticket sales, but I have no doubt that the tickets sales were of a lesser amount than the lost dales in the retail industry in London and the construction and maintenance industry slow down during the games which was caused by the games taking place in London.

There is other good news; there have been more people in employment and despite the impossibility of small businesses securing finance  from their banks, businesses are managing somehow, although with difficulty.

It is clear that we need to employ people in making things, installing things and servicing things if we are to secure our economic future. It is also clear that we must learn the lessons of the recession, caused by bank and hedge fund speculation. Someone has calculated that people are now £1800 a year worse off than they were in 2008. Most of that money has gone into the pockets of the bankers and hedge fund operators. That is no way to run an economy.

As our economy grows we must ensure that we direct money and therefore growth into the production of things, rather than the production of another giant casino which will impoverish those who are not wealthy. That is the lesson we must learn.