{"id":23238,"date":"2013-03-28T17:37:13","date_gmt":"2013-03-28T07:37:13","guid":{"rendered":"https:\/\/billmitchell.org\/blog\/?p=23238"},"modified":"2013-03-28T17:37:13","modified_gmt":"2013-03-28T07:37:13","slug":"the-march-of-the-makers-out","status":"publish","type":"post","link":"https:\/\/billmitchell.org\/blog\/?p=23238","title":{"rendered":"The March of the Makers – out!"},"content":{"rendered":"

\t\t\t\tI have noted before that the longer the economic crisis continues and the more data that comes out from national statistical agencies the easier it is to see how crazy the political elites who are driving austerity in their lands are. A few years ago it was a contest of ideas – austerity or not – and so anti-austerity arguments could be dismissed as “old fashioned”, “worn out”, Keynesian ideas. As the years pass the contest of ideas is being clarified by the relentless data releases from the agencies. Then those who advocate austerity have to not only explain at a conceptual level how a government can cut spending when non-government spending growth is weak and still forecast rapid growth but also have to somehow come to terms with the data that tells them their bets were wrong.
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\nOn March 23, 2011, the British Chancelor of the Exchequer George Osborne was still firmly in control of the debate. It was his second budget in government and the economy was still being supported by the budget deficits that the previous government had allowed to grow in the face of the crisis, which emerged in late 2007, early 2008.<\/p>\n

The data hadn’t turned against the Government by this time. The economy was still in recovery mode although the signs were ominous.<\/p>\n

On that day, the Chancelor delivered his – Budget Speech<\/a> – and early on in that Speech he said that he was introducing a:<\/p>\n

\n… Budget that encourages enterprise. That supports exports, manufacturing and investment. That is based on robust independent figures. A Budget for making things not for making things up. Britain has a plan. And we’re sticking to it.\n<\/p><\/blockquote>\n

I am sure he used the term “support” in a positive way although as the data has evolved it would have been a correct statement if he indicating his budget would contribute to the demise of exports, manufacturing and investment. One might say challenge my view and suggest that the external economy is mostly affected by developments elsewhere, which is true.<\/p>\n

But those developments are of the same ilk as the fiscal austerity being imposed in Britain. Further, if the external environment is weak, then it is the responsibility of the national government to stimulate the domestic production and allow manufacturing exporters to switch to local markets inasmuch as they can.<\/p>\n

The Chinese switch to strengthening their domestic demand in 2008 is a classic example of what to do if export markets falter.<\/p>\n

Anyway, in his 2011 Speech and after outlining the continuation of his plans for imposing fiscal austerity on the economy he ended with a barrage of jingoist triumphalism:<\/p>\n

\nWe are only going to raise the living standards of families if we have an economy that can compete in the modern age.<\/p>\n

So this is our plan for growth.<\/p>\n

We want the words:<\/p>\n

‘Made in Britain’<\/p>\n

‘Created in Britain’<\/p>\n

‘Designed in Britain’<\/p>\n

‘Invented in Britain’<\/p>\n

To drive our nation forward.<\/p>\n

A Britain carried aloft by the march of the makers.<\/p>\n

That is how we will create jobs and support families.<\/p>\n

We have put fuel into the tank of the British economy.\n<\/p><\/blockquote>\n

The march of the makers<\/em> hasn’t been a long one. In fact, it hasn’t been much of a march at all.<\/p>\n

The latest data from the British Office of National Statistics published yesterday (March 27, 2013) is summarised in the following Table.<\/p>\n

\"\"<\/a><\/p>\n

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In 2011, the Current Account deficit was \u00a324.1 billion. This rose to \u00a336.1 billion in 2012. The breakdown of that change is as follows:<\/p>\n