It’s that man again, economist David Blanchflower predicting a thoroughly gloomy future for the UK economy in his article in today’s Guardian.
Now what was that old saw about economists – put 10 of then in a room together, and you’ll end up with 13 different opinions. Anyway, the value of David Blanchflower is that he’s a magnet for negativity on the UK economy, and therefore attracts the support of the left, who remain in denial about our financial plight. In my view, and of Fraser Nelson in The Spectator, David Blanchflower is wrong, and because he’s so wrong when GDP, hopefully, continues to grow, we’ll have all the Blanchflower supporters stranded in their negativity.
I wrote yesterday about how there are encouraging signs with in our recent GDP output figures that show there is evidence of change in the UK economy. It shows growth coming from private sector investment and not government debt-financed spending.
Of course, as an optimist I’m looking at the positives, and judgement’s about our economic growth are finely balanced. But, as I say, there’s evidence in the most recent figures that we’re moving in the right direction. Weaning ourselves of government financed growth won’t be easy. Over the last decade we’ve clobbered private sector risk takers, and I think it’ll be a quarter or two before investment confidence returns.