FairDooz Posted January 30, 2012 Share Posted January 30, 2012 Any debate has to be informed by facts but the cherry picking of statistics by those defending a political position puts most people off political debate. This is what seems to be true: The general perception that UK manufacturing is on its knees is a long way from the truth. UK manufacturing output continues to grow but is in relative decline compared to the service sector (the service sector grew more). Employment in manufacturing continues to decrease as productivity increases. We have an unsustainable negative trade balance with the rest of the world (PWC report quoted above, Executive Summary - and see graph on p15) That for me sums up the current position. The positive facts seem to be outweighed by the negative. There is no room for complacency and the whole country needs to re-evaluate our attitude towards engineering and manufacturing. Our national status and prosperity depends upon it. Does that mean we need to borrow more to subsidise our manufacturing industry? I'd say no - that will produce short term gains and long term pain. What's needed more is an attitude shift. As quoted previously from the PWC report ... ‘There’s no glamour in entering the engineering industry. The respect and regard that an engineer gets in Germany is off the scale compared to the UK’ FTSE 100 CEO I wouldn't look to politicians alone to put this right. I have little faith in political parties to anything other than blow off hot air, insult each other and think about what hollow promises they need to make to get elected next time. And in the news last week ... UK moves closer to second recession as economy shrinks 0.2% • Drop in manufacturing output dents hopes UK can avoid slump • Data reinforces expectations of new round of QE • Chancellor says government will not change fiscal plans http://www.guardian.co.uk/business/2012/jan/25/uk-second-recession-economy-shrinks Cue panic, blame, insults, knee-jerk reactions ... Link to comment Share on other sites More sharing options...
Jim Graham Posted January 30, 2012 Share Posted January 30, 2012 Of course the economy is going to shrink as the government spends less money. They have to find a way to stop borrowing the £4,000,000,000 a week deficit Labour left behind. In the short term there is no way the private sector can fill that kind of gap. Labour built an economy on taxing, borrowing and wasting. It will take time to turn that around. In the meantime we have to read the rants of the economically illiterate as they try and make out it's all somebody else's fault. In the long term we have to find a balance between wealth creation and public sector spending. Labour left it all out of kilter with far too much being spent and next to nothing being earned. Link to comment Share on other sites More sharing options...
FairDooz Posted January 30, 2012 Share Posted January 30, 2012 In the long term we have to find a balance between wealth creation and public sector spending. Absolutely. AND ... a balance of rewards for all those who contribute to the success of a company. It's not just the Chief Exec and the board who should get all the rewards. RBS Exec Stephen Hester mayhave been railroaded into declining his £1m bonus. But that alone will not calm the anger over growing inequalities between pay at the top and the rest of us. But let me agree with your point again. Yes, public sector spending does have to be reined in at the moment. Debt is a huge problem. More debt is not the answer. Link to comment Share on other sites More sharing options...
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