UK: Squeezed Britain

Mihuel

@stonebat Your son is smarter than me!Tell that to him :)

stoney

I sure will. Hehe.

itimjim

Just remember though, that the UK is still the 7th largest manufacturer in the world. ARM anyone? However, the amount of UK jobs in our lines of manufacture are comparatively low, due to the markets we operate in. In terms of pounds and pence, we're still a powerhouse.

Being one of a few global financial capitals also gives the UK a healthy GDP. A GDP per capita that is ranked about 22nd in the world, compared to the powerhouses that are China (90th) and India (127th). Yes, there's market control in these new age powerhouses, but with GDP/capitas so low, ultimately spells poor social conditions.

The chances of us becoming a Malta in 20 years are slim to none. If anything, there will be a better global balance - which is a good thing. Capitalism is broken, but it might not have to go out with a bang. Perhaps it can lead to a stalemate and offer a road to society being the new capital.

onion

There was a very prescient capitalist called James Goldsmith who foretold of the social effect on the UK of globalisation and the disruptive entry of over a billion Asian workers to the labour pool. Ross Perot gave similar warnings in the US before selling out.

The only thing keeping the UK afloat at the moment is the financial sector. But this currently depends for its income on balance sheet fraud, regulatory arbitrage and an out-of-control OTC derivatives market. These are not socially desirable means to motor an economy. As global deleveraging gathers pace, this sector will become more a liability than profit centre (if it isn't already).

I agree the UK can rebalance towards high tech manufacturing. But it will be incredibly difficult now as others are racing ahead. And there is much pain ahead. Relying on finance turns out to have caused the most grotesque misallocation of capital and labour in the UK in centuries.

Vitaliy_Kiselev

Howdy, Stranger!

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