Let there be light
This summer the UK made a major change, Just as the rest of the western world seemed to be fighting off right wing idealists from power, The UK dumped its right wing grouping and took up with a more left wing group called the Labour Party. Left wing? Sometimes. This government is hardly distinguishable from it's predecessor however.
The UK has (in my mind unbelievably) returned not one but 3 Conservative Prime ministers and that doesn't include the the two holders of office who didn't gain their position in a general election. They are good at that the Conservatives, changing governments without managing to go to the people for an opinion.
Anyways...
There was little exuberance upon the election of this government compared to the advent of Blairite versions. perhaps the world the Labour party exists in today is different to those times. The financial landscape is for definite. Tony Blair had a much better economy than Keir Starmer to play with. but the reason for the lack of enthusiasm was that it isn't very clear exactly what the incumbents philosophy s on how to improve the lives of its subjects.
we haven't finished paying for the economic crash of 2008/09, Plus Brexit and now Covid.
Heads up, I am a remoaner at heart. I still cannot see what it is that the political Barmy Army of Johnson and Farage thought we would be better off with. All we seem to have done is reopen wounds in Northern Ireland and make it harder for food supplies to reach super market shelves
So what can be done?
Well infrastructure is always a good one. It is deemed acceptable by those that would lend us money to do so on the back of building things. Things like railways, bridges, improved public transport, communication/telecoms/internet.
As a for instance going North / South in this country is quite good compared with anything that wants to go East/West. Upgrading railways between Manchester, Birmingham and Leeds would be my choice. If money can be found for one line in London (Elizabeth Line) surely the regions could be helped out too.
I am a proponent of hi speed trains but the current plan for the UK is beginning to look like a horse that the infamous committee designed. Not reaching anywhere and not long enough to make much difference to the travel time. The reason costs have escalated is largley down to the dozy Conservatives pandering to the Not in My Backyard Brigade and have had to use a heap more tunnels than was originally envisaged.
I know AI has been talked about. I am afraid I will have to investigate how that will benefit before I engage in pushing it.
Borrowing costs are going up across the world so better make sure it is for stuff we can use
Governments like a little bit of inflation and a lot of growth. Inflation means that money borrowed becomes less challenging as its relative worth declines and growth means more tax income to pay for it.
So lets see what happens next
What Happened Next
Rachel Reeves - the current incumbent for Chancellor of the Exchequer for the UK, delivered a speech in late January an analysis of this speech can be found here. It more or less makes my blog entry redundant. There are also links to some BBC articles pointing out the lack of obvious investment in the North East Of England. Also making my blog entry redundant.
So what can I add?
Not much truth be told
I did do a blog which has links to a phenomenon called Zipfs Law. The law basically states that London is basically too big. Or rather the other cities in the UK are too small. London has become a super massive black hole at the heart of England as it just sucks in ALL resources, finance, agriculture, people - well almost everything.
The danger for the rest of the UK is that the rest of the country will effectively wither and die as London will gravitate EVERYTHING to it.
It was one of the reasons used for NOT building HS2 as it doesn't bring The North of England closer to London more like the north becomes closer to London. Yes I know it amounts to the same thing but what I am trying to get at is that rather than giving the North access to London it gives better access for London to reach out and usurp local services and facilities and bring the work to London.
As I said in the earlier blog was that the government is the only organisation in the UK capable of taking the UK in a different direction or at least negating the worst of the black hole effects. Better east west transport links of all kinds is a place where that could be applied. Better rail across the Pennines better communication between Manchester and Leeds. Better public transport provision in Leeds. The last city does not have a Tram Service for instance. These sorts of investments can transform cities if done right.
I am not sure how Sheffield feels about it Trams. Nottingham works better and Manchester could not cope without their Trams.
These programs are relatively cheap compared to 3rd runways
Mind you I support the 3rd Runway on the whole. Heathrow is a monster of a business and needs to grow to survive. Schiphol, Charles De Gualle and Frankfurt are all expanding and vying for superiority. To not recognise that Heathrow currently has the edge over the lot of them, it might not always be so if it is starved of investment.
But do not forget that relatively small investments in the North could lead to these areas improving their economic outlook.
My final point is that Keynsian Theory argues that governments should spend when times are hard and pull back and tax when times are good. To even out the peaks and troughs in economic life so to speak.
What has been happening in the last 15 years is contraction. The governments in that time have sought to limit governmental spending as we borrow too much. But this sort of response is actually recessionary in a time of recession.
Still what do I know
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