May 10

Are we seeing all that is there? I was touched by a German piece which helpfully in English pointed out the difference between outward rhetoric and the internal reality of German politicians. Thus the thing that really riles up politicians is optimism not hard questions. Indeed ask David Cameron if the average British family will be able to buy a home in 5 years time after another economic miracle. Bet that would have the tetchy creep being very tetchy. That’s not on offer.

The fears I would presume are that what is happening to western economies (slowing growth) and that this was an inevitable function of Globalisation. That low Western investment was a function of low labour costs in a global market. That this could turn around as China’s birth policies and usage filled up. Does this make more sense of the austerity meme whereby the west deflates and transfer payments need to reduce?

Personally I think this is a factor and certainly the unskilled racists who want to prevent immigration really really misunderstand that importing the skills here will have good side effects in such a world rather than leaving the skills abroad or even to be imported by other countries. Nonetheless it should not obscure the idiocy of handing trade disputes [TTIP] to a committee of lawyers to prevent countries changing Environmental/Banking/Pollution laws and the banks blowing debt bubbles. Sound economic management is still needed even if you can explain some factors by rising skill and access to the market in the rest of the world.

Indeed one outcome is surely to back infrastructure investment not just as graft as Tories and Labour do [HS2 Low Speed Old Tech Money to Friends]. How do you create a premium for doing work in the UK or any other country? You certainly won’t by privatising income streams and nationalising debt. Nor will you do it with subsidy paid out of the wages of workers in that market.

Maybe a proper response relies on Politicians being honest or even knowing why they do what they do. The fear I have in the UK is that apparent idiocy is not because they cannot explain it but because they believe it.

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