The government is standing by its unfeasible claims that the recession could not have been predicted.
Here Chris Colvin attempts, quite successfully, to show how plotting the movements of the Gross Domestic Product (GDP) could have enabled economists and treaury ministers to see what was coming.
Little Nicky Machiavelli says there is no need for Colvin’s graphs, worthy as they are. The astounding thing was the recession needed to be predicted, after all it has been with us since 1991.
We are still in the recession of the early 1990s, caused by the collapse
of the industrial base after it had been undermined for over a decade by the economic lunacy of Margaret Thatcher’s government.
The recovery and sustained growth which continued through the 1990s and until 2007 was an illusion of accounting created by writing up asset values to insane levels. Those who looked past the smoke and mirrors to see what was really going on had been warning since the millennium of the inevitable crash.
Now we are less well placed to cope with the collapse of globalism because thanks to the free market obsession we have outsourced all the real, wealth creating work to low labour cost economies and are left with a candy floss economy.
See veteran agony aunt Claire Rayner podcasts here on how the recession is truly a depression in the making and politiciand and business leaders do not have a clue what to do about it.
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