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Saturday, 5 January 2013

The economy demands a change in direction.

http://www.huffingtonpost.co.uk/2013/01/04/uk-economy-back-into-red-services-sector_n_2408017.html?utm_hp_ref=uk


UK Economy Dips Back Into The Red After Services Sector Shrinks 

 

economy building
Services, including construction, suffered badly in the last three months of 2012


 Advice to ConDem coalition, masquerading as government. Pop down to your local Smith's and purchase a copy of "The General Theory of Employment, Interest and Money," (it is also available in paperback from Amazon at £9.99), and note that in the short run, productive activity is influenced by aggregate demand (total spending in the economy), and that aggregate demand does not necessarily equal aggregate supply (the total productive capacity of the economy).  Therefore, if as a start, a comprehensive programme of house building of social housing for local authorities were commenced, the benefit to the economy would be two fold. The housing shortage problem would be addressed and aggregate demand in the economic cycle would be increased. There is abundant evidence that the austerity measures introduced since the last election have failed miserably and the effect on the economy are proving to be disastrous. The time has long passed for a change in direction.