Monday, January 26, 2009

Well, what a fucking surprise...

Via Samizdata, I can't say that I find the news that the state is propping up much of the country entirely surprising.
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.
...

In the northeast of England the state is expected to be responsible for 66.4% of the economy this year, up from 58.7% when a similar study was carried out four years ago. When Labour came to power, the figure was 53.8%.
...

Across the whole of the UK, 49% of the economy will consist of state spending, while in Wales, the figure will be 71.6% – up from 59% in 2004-5. Nowhere in mainland Britain, however, comes close to Northern Ireland, where the state is responsible for 77.6% of spending, despite the supposed resurgence of the economy after the end of the Troubles.

Even in southern England, the government’s share of spending is growing relentlessly. In the southeast, it has gone up from 33% to 36% of the economy in four years.

If I were the Tories, I wouldn't get too complacent about winning the next election: NuLabour has built a massive client electorate. All that they need to do is convince people that the Tories are going to cut public spending massively and people will vote Labour in droves. I am no fan of Cameron and his merry wankers, but the idea of another Labour term fills me with horror.

Fucking hellski...

6 comments:

John B said...

...except that the election is based on single-member first-past-the-post constituencies. The key swing areas for the Tories to win are London, the Midlands, the few bits of the rest of the Southeast that didn't go blue in 2005, and wealthy bits of the north (Cheshire, parts of Yorkshire). They aren't going to, and don't need to, take significant numbers of seats in the northeast, Scotland or Wales.

Anonymous said...

So DK Are you going to be pragmatic come the election on the last possible day, and vote Tory? :)

Or are you going to be all idealistic and throw your vote away?

Don't get me wrong, I love the idea and principles of the libertarian party but I won't be wasting my vote on them until we've got rid of the mad scottish cunt. Subsequent election maybe...

Z.

Thatcher's Child said...

I have been saying this for a long time within 15 years, both NI and Wales will be Communist in all but name.

The problem for the general public is that they can't understand how a builder, who's self employed, but contracted to work on a hospital, is being funded by the state.

A colleague is in a similar level of stupidity. His main living comes from a web design contract for an NGO. They are directly funded from the EU. Is he working for the state? He doesn't think so!

Roberto 'Tito' Sarrionandia said...

Time to put the rational economist hat on.

Government Spending is *not* production, it is diversion of private wealth

The economy is not driven by "consumption"

Therefore, if we were to remove the government spending, production would be the same.
The real thing we should grasp from this is that government figures show our economy as two thirds more productive than it actually is.

John B said...

"Government Spending is *not* production, it is diversion of private wealth... Therefore, if we were to remove the government spending, production would be the same."

Take a hypothetical country where, on Jan 31, the government provides telephone services through a state-owned corporation.

On Feb 1, the state-owned corporation is privatised, and continues to provide telephone services.

Now, we can probably agree that *in the long term* scenario 2 will be more economically productive - but it's a ridiculous nonsense to suggest that at midnight on Jan 31, the telephone company went from 'not productive' to 'productive'.

Therefore, your conjecture is nonsense.

Idle Pen Pusher said...

"The economy is not driven by "consumption""

Consumption is the entire point of the economy. We produce in order to consume, not the other way round.

"Government Spending is *not* production, it is diversion of private wealth"

Yes and no. If the government stops spending on, say, a hospital and that hospital closes and the medical services it 'produces' are no longer produced, has not 'production' been cut?

DK - see here why civil servants manage to be simultaneously lazy and hard working.