When all else fails, pretend it isn’t happening. This is the new
approach being adopted by pro-Tory "expert" economists according to a
report in the last issue of the Sunday Times.
When all else fails, pretend it isn’t happening. This is the new
approach being adopted by pro-Tory "expert" economists according to a
report in the last issue of the Sunday Times.
Evidently, they think that the data being produced by the Office of National Statistics (ONS) is just plain wrong and is "presenting an unrealistically bleak picture that is undermining confidence. The authorities are concerned that the downbeat numbers could become self-fulfilling." (ST 22/7/12) So, the "authorities" think it is all in the mind – firms are shutting down, people are being laid off, all because of data reports from the ONS. "Authorities?" – Authoritwities more like it!
They base their concerns on the falling official unemployment figures. The ST quotes an economist Ross Walker from the Royal Bank of Scotland (so he must know what he is talking about given the sucess story that is RBS) as saying "Private sector job creation is running at levels you just wouldn’t expect in a shrinking economy." However, a closer look reveals a none too healthy situation.
Clearly we are seeing record numbers of people moving from good wellpaid jobs to poorly-paid part-time jobs usually in the retail or service sector – stuffing shelves at Tesco or dishing out coffees at Starbucks. Yes, they are not unemployed but this is hardly a step forward to a rewarding career. Many others have just become self-employed (or self-unemployed more like it) to try and get by. These two processes are happening not only here but in Europe also, even in Germany. Of course, they push official figures down but hardly represent a recovery. Yes, a lot of jobs have been created for the Olympics – again mostly lowpaid and all temporary – but this will all start winding down in September when the games end. Also coming onto the job market will be this year’s quota of school-leavers and university graduates. So the real trends tell us that things are not getting better – certainly not for the mass of ordinary people. The chaos in the world finance markets is a reflection of the deeper crisis of world capitalism.
The dream that the recession had ended in 2010 or 2011 has turned out to be just a dream for big business, the banks and the bosses’ governments. We are living the nightmare. Greece, Portugal, Spain, … who will be next? You can’t just blame it all on "bleak" figures and hope for the best. Under capitalism there is no "best" just an ongoing crisis that seems set to run and run unless we do something about it.
