Jan

28

I found an article in the Times of London fascinating:

PARTS of the United Kingdom have become so heavily dependent on government spending that the private sector is generating less than a third of the regional economy, a new analysis has found.

The study of “Soviet Britain” has found the government’s share of output and expenditure has now surged to more than 60% in some areas of England and over 70% elsewhere.

The state now looms far larger in many parts of Britain than it did in former Soviet satellite states such as Hungary and Slovakia as they emerged from communism in the 1990s, when state spending accounted for about 60% of their economies.


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5 Comments so far

  1. Matt Johnson on January 28, 2009 2:09 pm

    Yep, and cable could trade to parity.

  2. Gary Rogan on January 28, 2009 2:25 pm

    And have you heard any American politicians analyzing this situation for some cost/benefit conclusions?

  3. George Parkanyi on January 28, 2009 5:53 pm

    So…I should buy the pound then?

  4. Nigel Davies on January 29, 2009 2:56 am

    Looking at the, er, bright side, as long as we don't get martial law or something the UK must have a general election by 2010. If the Tories get back in and start slashing the red tape that's accumulated over the last 12 years, coupled with a weak pound, that could set the scene for a recovery.

    If, on the other hand, Brown manages to get reelected (heaven forbid) we'll end up with some 18 years of 'New Labour'. They'll keep borrowing, taxing and regulating, the best and the brightest will head off elsewhere (as they did during the Wilson era) and sooner or later the UK will default.

  5. Patrick on January 30, 2009 7:22 am

    This is no suprise. I was in an electronics store last week purchasing a camcorder, obviously I tried to negotiate the price down, and the store manager explained that the store's markup was 10% and they really could not give me the discount I asked for. When I looked at my receipt and saw the 15% VAT, it really brought it home how much the government takes in. On top of this the government does not have to even open stores and risk capital.

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