mecheng

The UK is officially in the longest recession since records began (see attached link).

http://news.bbc.co.uk/1/hi/business/8321970.stm

Can the UK government do nothing right? That's what happens when you rely on the financial services industry while British manufacturing (the true wealth creators) are given little support.

WillBlack

Rentier Capitalism is a name for it used by Marx.

Credit Card Capitalism might be a term with more modern linguistic resonances.

MartinLuther

Retiree Capitalism is probably a closer match.

However whereas the property owning classes in Marx's time where generally descended from historical robbers and thugs more of today's property owning class has achieved this through hard work and enterprise. That's not saying that the former group still don't own a lot of property but the balanced has definitely changed since Marx's time.

As in all times the youth still think it should be handed to them on a plate (preferably silver).

silver

Its not my fault... honest...

Centurion

Thats OK - the government is expected to print another 25 billion in November and then put VAT back up in time for Christmas. Thats sure to help things.

framac67

Can I just point out who was responsible for the decimation of the manufacturing industry.......yep it was Maggie again. I rest my case.

Comauver

http://www.independent.co.uk/news/bu...ur-528680.html
Gordon Brown's reputation for economic management will suffer a blow today from official figures showing that 1 million manufacturing jobs have been lost since Labour won power in May 1997.

And this was in 2005, so you can add on a few hundred thousand more since we're now stuck in the longest post war recession.

ABCDiamond

How did she do it ?

iamthecreaturefromuranus

by having punitive interest rates during a recession.

WillBlack

Preceeded by years of increasing inflation which did not ameliorate the stagnation. By which time British goods, especially cars, gained a reputation for being shoddy relative to Japanese goods.

ponyrama

Nah - it was cos she stopped school milk!

iamthecreaturefromuranus

Car industry had problems, no doubt about that, but an awful lot of excellent manufacturing was sent to the wall during that time in an over zealous attack on inflation.
I have even heard Howe admit to making a mistake and having an over restrictive monetary policy for too long, something politicians are not fond of doing

mecheng

Foundations may have been laid by previous governments but it doesn't mean current governments need to pursue the same agenda. A number of successful British manufacturers have struggled to access finance because of the conditions imposed on them by financial institutions which caused the problems in the first place. The government protects them and ensures they don't fail while those manufacturing companies who are not the cause of the problem are allowed to hit the wall. A truly sad state of affairs.

WillBlack

Over zealous supply of money, to stimulate the economy drained by wars, more particularly the Vietnam and cold war, lead to inflation which approached uncontrollable rates. Almost usuary high real interest rates prevented hyperinflation and subsequent economic collapse at the price of bankrupting some over indebted interest rate sensitive business.

iamthecreaturefromuranus

What's the word I'm looking for...... ahh yes, there it is. Codswallop.