Times are tough, very tough in some areas! However they could be a darn sight worse!
- The UK can pay it’s way and borrow at cheaper interest rates than many other countries.
- Pensions and public sector wages are paid in full and on time unlike Greece and Ireland. Recent Irish savings of 1.76bn euros came from the public sector pay bill and social welfare.
- The number in work and the economy continues to grow although the number unemployed is also growing
- The UK can contemplate easing money into the economy. This includes starting construction projects and being on of Europes early tax cutters as the world recession eases.
Moans About the UK Economy
- I was recently asked what has happened to UK manufacturing will it ever return? Well many sectors are still vibrant and world leading. Don’t knock the manufacturing that we have.
- Energy and power costs are too high and growing too quickly. Taxation and environmental pressure do not look set to change in the near future. We may have to live with the problem.
- Imports from the Far East are too cheap and costing jobs. Well our view is that a far east worker is probably paid 5p for every £1 we retail a product at. The shipping, duties & taxes, wholesale margins and retail margins earn more for the UK than the far eastern economy. There are long term risks but we can enjoy the short term gains.
- Bad news is news and feeds our voracious and rapacious media industry- good news is not in abundant supply! Why run ourselves down all the time.
- Many sectors are hiding incompetent management by using the economy as an excuse. ‘The economic climate is blamed for an increased number of complaints to Yorkshire Water’ more ‘Customers are complaining about being harassed and mistreated by banks and financial institutions over mortgage arrears and loan repayment disputes.’
- Pensions are not adequately funded. Too many snouts have been in the trough including the tax man, the banks and the mercenary pensioners.
Economy on the Right Track
- Hotels seem quite full and room rates are quite high without too much discounting. Just wait until the Olympics!
- Eating out has not diminished although there may be a move towards good value cooking rather than branded boil in a bag eateries.
- Christmas shopping has started early and the warm weather is helping. It is too early to predict the total effect but some high street brands look set to make major in-roads into the market share of weaker competitors.
- Survival of the strong and capable whilst accepting the sacrifice of the weak is part of a natural economic cycle.
- Equality between public and private sector workers need to continue to be tweaked to remove some glaring anomalies.
- Will the European Union face up to its eco-political problems or will unilateral action become a necessity?