Comment: This is a fascinating blog by Scriptonite that truly reveals the state of our economy, and lies we’re being told due to difference between ‘marcro’ and ‘micro’ econimics: this needs to be shared far and wide!
UK economy ranked below Zimbabwe by World Economic Forum, thanks Cameron
While UK Prime Minister David Cameron and his chancellor George Osborne claim their austerity policies are making the UK economy stronger, a devastating report by the World Economic Forum argues otherwise. In fact, parts of the UK economy are now performing worse than Haiti and Zimbabwe.
The World Economic Forum releases it’s Global Competitiveness Survey every year, a major report that is read and referenced by decision makers in politics and business the world over. This year, the UK slipped from 9th to 10th overall, out of the 140 countries studied. But if Cameron and Osborne are saying the UK economy is not only in recovery, but the fastest growing economy in the developed world, how can we be slipping down the league tables?
The answer is debt. In the area of the assessment entitled ‘macroeconomic environment’, the UK came 108th, behind Haiti, Senegal, Zimbabwe and even Liberia.
In short, macroeconomic means the big picture. You know the difference between immediate weather versus weather systems? Well think of the macroeconomy as the latter.
If we stick with our weather analogy, micro weather would be, you look outside the window and it’s sunny. But if you wanted to understand the macro weather, you’d go sit in the Met Office and see what’s happening with the gulf stream, and hot/cold fronts, and the wider weather systems. That will tell you not only what the immediate weather is where you are, but what’s happening elsewhere and how that will impact your local weather in the future. Then you’d be able to see that while it is sunny now, there happens to be a Hurricane coming.
When examining the macroeconomic environments of the 140 countries in the study, the World Economic Forum assessed five factors to build that ‘big picture’. While the UK’s overall rank was a dismal 108, we actually ranked significantly lower than that in several key areas.
Inflation: 1st of 140
Country credit rating: 14th of 140
Government budget balance: 118th of 140
Gross national savings: 118th of 140
General government debt: 123rd of 140
Cameron and Osborne claim to have balanced the UK’s books, yet one of the most respected global studies ranks the UK’s budget 118th in the world. Something is wrong with this picture.