Economists: A question...

But presumably you still need more producers than consumers, unless you import everything?

Gothic Image said

But presumably you still need more producers than consumers, unless you import everything?

But many consumers double up as also working in some level of production or service. The issue is that if production dries up, you can still import (thanks China), companies can still exist and the world keeps on turning. But if you run out of consumers, everything stops.

No government has ever understood their economy.

Economies aren't "run"; they never have been, not even the "planned economies" of the Soviet Union.

Economies emerge. Governments really only nudge them in a direction they desire. Unplanned economies (like the black economy that is a product of evasion and barter) always emerge to fill whatever gap the government's efforts don't cover, and the true economy of any given state is the combination of the two. Countries that engage in strong planning inevitably evolve a stronger black economy; countries that engage in weak planning evolve more structural inequalities (such as the roof over one person's head being a mere investment asset class to another).

National economies are now so conclusively globally interlinked that it's not clear that any national government can fix their own economy. It's worth noting that the Germanic economies we're told to emulate are also the ones the most utterly dependent on imported gas, for example, because they externalised the costs of their energy inputs.

Our economy cannot be fixed, I think, but it is clear -- apolitically -- that we as a nation of voters and investors choose successive governments of all political stripes that engage in less planning as a manifesto commitment, and that this means there is less intention to even try to fix it. 

No British government takes on the really big difficult questions, because no voter wants them to. We are no longer a nation of shopkeepers, as you say; we're a nation of private landlords, and the structure of inequality is baked in.

Edited by Unfocussed Mike

Financialisation has murdered the concept of honest price discovery in the markets. It's really fucking ugly out there and I am waiting for a huge collapse. Then I'll pick up high quality companies at a discount.

The whole world is just being set up for the openly discussed but seemingly ignored "Great Reset"...you will own nothing and you will be happy.

Don't believe me?

Take a good look around and ask yourselves why governments are all borrowing like crazy, debt is being bought and traded worldwide and banks are starting to question even the most trivial of personal transactions.The World Economic Forum has its graduates embedded into many governments, many political leaders seem to be where they are despite all logical reason, selected rather than elected, others really are there to distract us from who or whatever is actually directing operations.

And you will be happy.

You will not have the means to resist and you will not have the vocabulary to express any discontent.

Give it five years, then come and ask me why you weren't warned.

Hey dude

The UK runs:

Net fiscal deficits

Net trade deficits

Negative net international investment position - ie the UK has net international liabilities

UK doesn't even make the top 35 countries for GDP per head - an hour worked in a G7 country produces 18% more than an hour worked in the UK. By GDP per hour worked, productivity in the US is 30% higher than in the UK. It takes a German worker less than 4 hours to produce what a UK worker produces in 5... etc etc

......but the UK does run a capital account surplus...

and that makes it all alright   Lol :)

In other words, just keep selling our assets to foreigners and we don't actually need to do any real work - life's a breeze - it's as simple as that :)

UK GDP began to turn negative in March - we may be already in the “next recession”.

A big difficulty in understanding 'Ecomomics' is, I feel that there are a number of "Economies". There is 'Big E' the attempt at a global economy of, ideally, but seldom (never?) achieved mutuality and cooperation- make that never then.

Each smaller division, Country/trading block will have its own internal  'system.' 

 Global economics is a very different beast to the economic system that the majority of people exist in there domestic/personal economics and so grasping the "big picture" is extremely difficult.

Thatcher's 'housewife, wallet in handbag' domestic budget' approach to a Country/World application was a disastrous failure which still haunts us (UK).