Recovery

 

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‘The British economy is now in recovery mode,’ claim politicians.

They herald: ‘The end of the recession has arrived to rescue all of us’.

And bluster: ‘We’ve all swallowed the bitter but necessary medicine of austerity – all those cuts to public services and jobs.

Austerity works. And must carry on until 2020.

But the UK budget deficit declines.

Official statistics show the UK economy grows.

London is a world class city, a global capital.

‘Britain’s soon going to able to pay its way in the world again,’ they insist.

‘Join the optimists’ army.

Enlist.

A cash cow cometh.

Look at those statistical economic fundamentals.

Unemployment falls.

The newly-normalised UK economy needs you.’

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Recovery

Much optimism is based on an Office for Budget Responsibility forecast – the value of all UK economic activity (GDP) will rise by 2.7% during 2014.

Successive quarterly growth allows politicians to paint a cosy, rosy outlook:

‘Look at the quarterly good news from the Office for National Statistics,’ they say.

‘Wages rising 1.7%.

That’s ahead of low inflation at 1.6%.’

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Employment

Employment in London is at a record high, according to ONS regional labour market statistics for the three months to March 2014.

The number of people claiming unemployment benefit also falls.

Politicians say: ‘Unemployment in London has fallen by 7.8%.

A five-year low.

Tumbling by 12,000.

Leaving 343,000, or just under 8% of London residents aged 16 and over, out of work.

Meaning some four million Londoners enjoy employment.

With more women and young people in jobs.’

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Low interest rates 

Homebuyers in mortgage debt are reminded: ‘Low interest rates keep down your monthly repayments.’

Powerful central bankers in the Bank of England have artificially suppressed interest rates to a record low of 0.5% for five years. This enables the Bank to feed cheap money via ‘Quantitative Easing’ to the UK’s main private banks.

Treasury ministers say these banks must survive if the economy is to thrive – and so low interest rates are essential too.

They chime: ‘London’s economy shows healthy green shoots of recovery – and London leads the way for the rest of Britain.

The end of recession and economic distress is nigh.’

So flows the tide of pre-2015 election propaganda, running high.

 

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© London Intelligence 2014