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'Doomsters' will be proved wrong on UK economy

Posted: 20 Feb 2009, 20:54
by Aurora
The Guardian - 20/02/09

The business secretary, Lord Mandelson, today vowed to prove the "doomsters" wrong on the British economy.

Mandelson admitted the country faced "a tough climb" out of recession, but said it was on the verge of a low carbon "industrial revolution".

He added that a shift to low-carbon technologies and production would "transform how we live and work" and bring huge economic opportunities.

Article continues ...

Posted: 20 Feb 2009, 21:55
by Ben
I'm glad to hear that the "doomsters are wrong", but a lot of my friends (non-POs) are now making active plans to leave the country - predicting something along the lines of a Japanese 10-20 years recession. I'm beginning to wonder who'll be left :shock:.

Posted: 21 Feb 2009, 00:00
by Cycloloco
Ben wrote:I'm glad to hear that the "doomsters are wrong", but a lot of my friends (non-POs) are now making active plans to leave the country - predicting something along the lines of a Japanese 10-20 years recession. I'm beginning to wonder who'll be left :shock:.
Try your friends with this amateur argument from me. For the last 30 years sterling has been a petrocurrency and consequently over-valued in terms of the country's other output. As UK production of oil and gas declines we revert to being a manufacturing country with a lower-valued currency which helps to promote exports. Financial services are a bonus.

If your friends are skilled workers they should stick around. (Mandelson could be right.)

Posted: 21 Feb 2009, 00:16
by Ben
Well I'm fond of the place and am staying put (probably) but I'd have to believe in something myself before trying to convince friends of it, especially those with children. I think the UK has some serious structural problems and skill shortages, few natural resources and a poor transport, energy, food and education infrastructure. Plus chronic short-termism.

I'd be surprised if the UK wasn't in the Euro within a few years so the advantages of a weaker currency wouldn't last long; the Euro is basically the Deuschmark by another name.

Most of all I don't think there is a recognition of the size of the problems facing the country and, even if there was, little chance of coming up with and carrying out planned long-term solutions. Our tradition is well-meaning, and sometimes quite lazy, amateurs "muddling through".

I’m not always this pessimistic! :D

Posted: 21 Feb 2009, 05:59
by fifthcolumn
Both are right.
Britain will fall to a much lower standard of living but ultimately (after a long hard recession [depression?]) it will pull out basedon low carbon tech and it's natural place as a maritime tradibg nation.

I bet I personally will be an old man before it happens though.

Posted: 21 Feb 2009, 09:31
by Erik
All this talk about leaving the country when things get tough is precisely that: "talk"! There seems to be a natural tendency, which I've seen both in the UK and in Spain, to presume that things can't be as bad overseas as they are at home. Despite how rough the future looks people need to give some thought to the downside of moving away from where their cultural roots are. There is a lot to be lost by seeking this somewhat imaginary greener grass on the other side of the river.

Posted: 21 Feb 2009, 09:47
by Vortex
All this talk about leaving the country when things get tough is precisely that: "talk"!
Usually ... BUT ... there are some who do make the move.

I left the UK in the 1991 recession and got a decent job abroad for 7+ years.

When we came back the recession was over.

However this time I'm older and also I'm not sure there is anywhere to run to ...