This was Andy Haldane of the Bank of England talking this morning:
“I’m a bit less on the front foot than I was three months ago…..In the global economy, certainly we’ve seen some of the energy of the recovery reduced, we’ve seen global growth prospects revised down a bit and here in the U.K. we’ve seen inflationary pressures from wages but also from oil prices, from commodity prices also heading south.”
Shurely shome mistake? No, that is apparently what he said. It’s all the workers’ fault. Hmm. He went on to say:
“Growth in UK real wages has been negative for all bar three of the last 74 months….”
Um, er….right, OK. And further:
“The level of UK productivity is no higher than it was six years ago’”
Are we all following this? This is the Andy Haldane who’s the Chief Economist at the Bank of England. If I can just put into words what Andy said, the argument runs like this: ‘3 out of 74 months of falling wages = an inflationary pressure from falling commodity values, which somehow also = no improvement in UK productivity’.
It’s devilishly complex this economics stuff, innit?
The ‘explanations’ get sillier by the day. To remind older Sloggers – and run this by newer readers – we shut down the somewhat tiresome idea of giving bank customers sorry creditors any return on their deposits to save the banks. Had we done the opposite, the banks would’ve fallen, but the economic consumption would’ve been boosted by the biggest 55+ demographic in the history of mankind.
There’s a clue in here as to why the economy is going nowhere beyond paper-shuffling in the City, and why a return to return on investments is getting further away.
Can yer see what it is yet a-hee a-hoo a-hoo a-hum a didgeridoo…