Tag Archives: FT.com

‘UK gloom risks clouding real picture’

THAT’S not my headline, incidentally, but the FT’s.

Any politician who dares suggest that the country isn’t doomed (particularly if he or she’s a minister) gets pilloried for a fool. But since I am not a minister, and since I’m used to being pilloried, can I recommend this article, which paints a fairly balanced, though still depressing, picture of our economic prospects. 

Nevertheless, it contains this interesting, previously overlooked morsel:

Economists expect household disposable income to grow this year at 1.4 per cent, twice last year’s level and almost 50 times faster than in 2007.

Although investors demand higher yields on government debt than in Germany, they are more willing to hold UK government and corporate paper than they were in October. The trade position is improving and with oil prices falling, a fiscal stimulus and substantial state support for banking, Britain is about to enjoy the most powerful fillip the economy has seen.

I accept the argument made in a previous thread that it’s not always fair to accuse someone of “talking down the economy” just because he points out an unwelcome fact. Similarly, it’s absurd that anyone who suggests the UK is not going bankrupt and that we will, at some point, emerge from the other side of the downturn, is an out-of-touch, demented loon.

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