1975 Billion Dollars (exchange rate of 1.795) at the present moment.
Europe's fastest-growing economy, and the world's 4th largest, about to become only the 4th country in the world to reach 2 trillion and should soon overtake Germany to become Europe's largest economy for the first time since 1959.
I am presenting TWO views of Britain's economy here, so please don't jump to conclusions from the first paragraph! I am aware that the issue of Britain is the subject of much discussion right now, and I would like to bring both views to this
Twenty five years ago, Britain was the sick man of Europe, with a lagging economy, slow growth, low productivity, soaring inflation and crippling strikes. Every year, the British economy fell further and further behind the economies of Germany, France, Italy, Belgium, the Netherlands, and the Scandinavian nations. As a financial center, London lost ground steadily, falling behind Tokyo and then Frankfurt. The future of Britain looked extremely bleak. Crippling taxes sent tax-payers to other countries and discouraged investment. State-owned industries were among the least productive and most inefficient among the developed nations. In 1976, the situation in Britain was so bad that the International Monetary Fund was called in to save a nation that was on the brink of 30% inflation - an incredible humiliation for the nation that largely created the world’s industrial economy. (Part of this is adapted from Paul Johnson's "Modern Times")
Today, that situation is completely transformed. Britain now has the most dynamic and productive of the large economies of Europe. Its total GDP remains substantially behind Germany’s, but it may catch up - something that would have been unimaginable in the 70s. Unemployment is lower; productivity is higher; home and stock ownership are at all time highs; inflation and interest rates are low - a complete turnaround from the 70s.
http://www.britainusa.com/sections/...e_ID=5535&i=104
http://news.bbc.co.uk/hi/english/bu...5000/435668.stm http://www.post-gazette.com/pg/04280/390972.stm
However, there is another side to the story as well. Britain shares many of the successes of the US, BUT also many of the weaknesses. Britain also has a large division between rich and poor - and a high rate of poverty among children. http://www.zmag.org/sustainers/cont.../10cromwell.cfm
Also, there is a serious crime problem - ironic because Britain once had one of the lowest: http://www.telegraph.co.uk/news/mai.../01/ixhome.html
http://www.newsmax.com/archives/art...21/205139.shtml
A spectacular housing boom exists side by side with a serious shortage of affordable housing:
Quote:
POVERTY AND SOCIAL EXCLUSION IN BRITAIN
D. Gordon et al
York: Joseph Rowntree Foundation, 2000
By the end of 1999 a quarter of the British population were living in poverty measured in terms of low income and multiple deprivation of necessities. Roughly 9.5 million people in Britain cannot afford adequate housing. About 8 million cannot afford one or more essential household goods. About 2 million children go without at least two things they need. About 6.5 million adults go without essential clothing. Around 4 million are not properly fed and over 10.5 million suffer from financial insecurity. One in six people considered themselves to be living in absolute poverty as defined by the United Nations.
It seems to me that Britain's boom is the most under-rated story in the world of economics today. But it isn’t just an economic story. It is also a political story. I believe the primary architect of this transformation is Margaret Thatcher, Britain’s PM from 1979 to 1990. She utterly transformed the structure of the British economy. She cut taxes dramatically; sold off the state industries; rewarded invetsment; promoted an entrepeneurial environment; defated the strikers and essentially ended strikes as a problem; helped to transform London into the indisputable financial capital of Europe and the second financial center of the world - with the 2nd largest stock market; opposed the Euro and wanted Britain to return to more or less total independence from the continent of Europe.
She undid most of Britain's economic policy since the Atlee socialization rogram of 1946, and broke the growing power of the labour movement that began in 1906.
I know that she brings forth powerful reactions among people in the UK. During time spent there, I saw how deeply the people of Britain feel about her. She won enormous victories, yet there are many who loathe her. It's not comparable (in my opinion) to Ronald Reagan in the US. Many here hate his policies, but few hate him as a man. When he died, almost everyone genuinely grieved. The feelings about Thatcher seem far more divisive. Perhaps she changed Britain even more than Reagan changed the US.
Few people have mixed views of her. I admire her - but I acknowledge that I am an outsider. She promoted the release of free-market forces with great personal charisma and use of power - but she also helped end an old way of life that many loved. It's a mixed picture.
Also, would she have gone to war with Bush as Blair did? She is very pro-American, but did little to support Blair. My impression is that she didn't necessarily oppose his policy, but was disgusted with his failure to make the case for war convincing and palatable to the British public and to make use of all diplomatic channels. http://www.thisislondon.com/til/jsp...itemId=10584417
However, she praised his support of the US, at least at the beginning. She was a great proponent of the "Special Relationship" between the US and Britain: http://news.bbc.co.uk/1/hi/uk_politics/2560767.stm
Do you agree that she is the primary architect of today's British economy? Would you blame her for the failures? Do you credit her with the successes? What do you think?
--------------------------------------------------------------------------------
Europe's fastest-growing economy, and the world's 4th largest, about to become only the 4th country in the world to reach 2 trillion and should soon overtake Germany to become Europe's largest economy for the first time since 1959.
I am presenting TWO views of Britain's economy here, so please don't jump to conclusions from the first paragraph! I am aware that the issue of Britain is the subject of much discussion right now, and I would like to bring both views to this
Twenty five years ago, Britain was the sick man of Europe, with a lagging economy, slow growth, low productivity, soaring inflation and crippling strikes. Every year, the British economy fell further and further behind the economies of Germany, France, Italy, Belgium, the Netherlands, and the Scandinavian nations. As a financial center, London lost ground steadily, falling behind Tokyo and then Frankfurt. The future of Britain looked extremely bleak. Crippling taxes sent tax-payers to other countries and discouraged investment. State-owned industries were among the least productive and most inefficient among the developed nations. In 1976, the situation in Britain was so bad that the International Monetary Fund was called in to save a nation that was on the brink of 30% inflation - an incredible humiliation for the nation that largely created the world’s industrial economy. (Part of this is adapted from Paul Johnson's "Modern Times")
Today, that situation is completely transformed. Britain now has the most dynamic and productive of the large economies of Europe. Its total GDP remains substantially behind Germany’s, but it may catch up - something that would have been unimaginable in the 70s. Unemployment is lower; productivity is higher; home and stock ownership are at all time highs; inflation and interest rates are low - a complete turnaround from the 70s.
http://www.britainusa.com/sections/...e_ID=5535&i=104
http://news.bbc.co.uk/hi/english/bu...5000/435668.stm http://www.post-gazette.com/pg/04280/390972.stm
However, there is another side to the story as well. Britain shares many of the successes of the US, BUT also many of the weaknesses. Britain also has a large division between rich and poor - and a high rate of poverty among children. http://www.zmag.org/sustainers/cont.../10cromwell.cfm
Also, there is a serious crime problem - ironic because Britain once had one of the lowest: http://www.telegraph.co.uk/news/mai.../01/ixhome.html
http://www.newsmax.com/archives/art...21/205139.shtml
A spectacular housing boom exists side by side with a serious shortage of affordable housing:
Quote:
POVERTY AND SOCIAL EXCLUSION IN BRITAIN
D. Gordon et al
York: Joseph Rowntree Foundation, 2000
By the end of 1999 a quarter of the British population were living in poverty measured in terms of low income and multiple deprivation of necessities. Roughly 9.5 million people in Britain cannot afford adequate housing. About 8 million cannot afford one or more essential household goods. About 2 million children go without at least two things they need. About 6.5 million adults go without essential clothing. Around 4 million are not properly fed and over 10.5 million suffer from financial insecurity. One in six people considered themselves to be living in absolute poverty as defined by the United Nations.
It seems to me that Britain's boom is the most under-rated story in the world of economics today. But it isn’t just an economic story. It is also a political story. I believe the primary architect of this transformation is Margaret Thatcher, Britain’s PM from 1979 to 1990. She utterly transformed the structure of the British economy. She cut taxes dramatically; sold off the state industries; rewarded invetsment; promoted an entrepeneurial environment; defated the strikers and essentially ended strikes as a problem; helped to transform London into the indisputable financial capital of Europe and the second financial center of the world - with the 2nd largest stock market; opposed the Euro and wanted Britain to return to more or less total independence from the continent of Europe.
She undid most of Britain's economic policy since the Atlee socialization rogram of 1946, and broke the growing power of the labour movement that began in 1906.
I know that she brings forth powerful reactions among people in the UK. During time spent there, I saw how deeply the people of Britain feel about her. She won enormous victories, yet there are many who loathe her. It's not comparable (in my opinion) to Ronald Reagan in the US. Many here hate his policies, but few hate him as a man. When he died, almost everyone genuinely grieved. The feelings about Thatcher seem far more divisive. Perhaps she changed Britain even more than Reagan changed the US.
Few people have mixed views of her. I admire her - but I acknowledge that I am an outsider. She promoted the release of free-market forces with great personal charisma and use of power - but she also helped end an old way of life that many loved. It's a mixed picture.
Also, would she have gone to war with Bush as Blair did? She is very pro-American, but did little to support Blair. My impression is that she didn't necessarily oppose his policy, but was disgusted with his failure to make the case for war convincing and palatable to the British public and to make use of all diplomatic channels. http://www.thisislondon.com/til/jsp...itemId=10584417
However, she praised his support of the US, at least at the beginning. She was a great proponent of the "Special Relationship" between the US and Britain: http://news.bbc.co.uk/1/hi/uk_politics/2560767.stm
Do you agree that she is the primary architect of today's British economy? Would you blame her for the failures? Do you credit her with the successes? What do you think?
--------------------------------------------------------------------------------
