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.

3 Responses

  1. What we are now seeing is the projected festive seasoning taking place on the high street, which is lifting the figures up to the 1% mentioned, gained by greater debts to come after the new year.

    The further we have removed the debt wealth the greater our asset wealth has increased, to the stage where we are through those labours, reached a position set for a recovery in house with surpluses that other could take advantage of through reciprocation.

    In our town several outlets, themselves chasing the slavery money selling slavery products have gone the way, many others are now sharing shop frontage and floor space, recession over, not a chance, in the city yes since the olympics have ceased.

    All one has to do is open their eyes to see more empty shops, and only corporate criminal giants in charge of the plantations working for nothing.

    A freind and seasoned economist says this trend is probably going to last for another ten years, he has always been right so far.

  2. I think there are four dangerous trends.

    Firstly, and as a result of computerisation, there is a general trend to reduce the amount of skilled and professional jobs. The moderately intelligent middle classes who used to run insurance company offices, local rates offices etc are being eliminated. Leaving predominantly manual labour.

    Secondly, banks, large corporates, utilities and to some extent governments, can and do control money and concentrate vast personal fortunes in the hands of, largely undeserving, corporate directors. Speculators, monopolists and taxation all work together to rob us of the genuine profit from what we do. From the highly trained professional to the unskilled farm worker, we get far less out of working/employment now compared to 50 years ago.

    Thirdly, largely as a result of our benefits system, vast numbers of people in the UK get paid to stay out of the labour market and this draws in unskilled workers from countries without a similar benefits system. This trend results in overcrowding in some areas simply because the number of people vastly exceeds the available work. It also results in crime. If you are paid whether or not you work, luxuries can be obtained by crime. I suspect we do not need the vast numbers of houses claimed by politicians. What we need is better correlation between the available work and houses.

    Fourthly, taxation and borrowing has led to a situation where the civil service, local authorities, quangoes and (government sponsored charities) spends/wastes vast amounts on pet projects, salaries, cronies, foreign aid, welfare.

    As a result, the UK now has a population way beyond its capacity to gainfully employ. Borrowing our own money (at ever higher interest rates) from the banks and increasing taxation are short term answers. Our government has no vision to resolve the problems. We are not all in it tgether. Cameron and Osborne epitomise the source of the problem.

    The likely scenario for workers is an ever dwindling reward for working in a useful capacity and an ever increasing desire of many to be a pampered government officer. (for more information check out Greece). Or on benefits. The directors of large corporates will keep the wealth in the ‘family’ and manipulate profits so as to starve countries of tax. The bankers will continue to speculate to make our food and fuel more expensive. The monopolists will keep pushing up prices to the most the market will bear.

    • Good post Chris, probably the best in blog since it started.

      We are indeed fast aproaching the point where the majority of people will no longer be able to service their debts, using more debts, By next April we could be at war for propper In the middle east, then we will really see how the long build build up their pans out.

      I’m not sure where about’s you reside, but the states is preparing for something very big, best place to be Iceland maybe, definately not in debt and in the UK.

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