UK – the productive economy
It has become commonplace to put the blame for the current recession on the shoulders of greedy bankers, on the increased financialisation of the British economy over the last twenty years. In some ways, however, this is unfair since there has been a much longer term decline in British manufacturing industry. Leaving a hole, it could be argued, which the growth in financial services and public spending has been attempting to plug. Although some commentators now call for a return to productive investment and a regeneration of manufacturing to set the balance right, is this at all realistic? Is there something intrinsically wrong with an economy based on services and high levels of consumption? Is an economy based on ‘production’ somehow better and sounder? What should the balance be?
Angus Kennedy, IT Consultant and web master Battle of Ideas and Culture Wars websites