Differing definitions of economic recovery

http://www.theguardian.com/business/2016/feb/10/differing-definitions-of-economic-recovery

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“Nonetheless, any progress in reducing the trade deficit is likely to be extremely slow in the near term, leaving the recovery reliant on domestic demand.” So said an analyst quoted in your report on the UK goods trade gap having reached a record £125bn last year (Financial, 10 February). So, if I go out and exchange my four-year-old car for an expensive one that I cannot afford, apparently I shall have “recovered”.

In fact, though the chancellor might be happy in the short term because of the VAT he would harvest, I should be feeling decidedly queasy wondering how I was going to service the debt I had taken on to make the purchase. But no, according to current economic theory, I would be in recovery. Makes you wonder, doesn’t it?Simon GourlayKnighton, Powys

• You report “fears of 2008-style crisis” (10 February). Truth is, this is still the 2008 crisis. Eight years ago we didn’t “save the world”. Instead, we sat around waiting for someone else to pay the bills. Inertia can preserve wealth for those who already have it; but inertia won’t create wealth for those stuck in poverty. Pretending poverty doesn’t matter, as our Tory government does, does not contribute to economic or social development. Inertia surrenders space to economic and political stagnation, which, in turn, makes space for international conflict and social disharmony.Martin LondonHenllan, Denbighshire

• Markets are “unnerved”, “market confidence is fast deteriorating”, “market expectations [or should that read speculations?] are not met”, all of which adds up to “global markets being haunted by fear”. Where is the “rationality” in all of this, ie rational people making rational and informed decisions, which presumably is the mantra that underlies the principle and justification of “free market economy”?Wolfgang WittwerLondon

• “Warning of tax rises as market turmoil hits Osborne budget” (9 February). So at the next election it will be a choice of Labour tax and spend or Tories tax but don’t spend. I know who’ll get my vote.Tom SwallowKenilworth, Warwickshire

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