This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/commentisfree/2013/may/15/economics-politics-happy-talk-editorial

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Economics and politics: happy talk Economics and politics: happy talk
(4 months later)
Hooray! The Bank of England is no longer quite so gloomy about the economy. Cheers! The number of people claiming jobseeker's allowance fell last month. Thumbs up! The statisticians now think the UK may have avoided falling into a double-dip recession last year. Green shoots all round!Hooray! The Bank of England is no longer quite so gloomy about the economy. Cheers! The number of people claiming jobseeker's allowance fell last month. Thumbs up! The statisticians now think the UK may have avoided falling into a double-dip recession last year. Green shoots all round!
The excitement generated by the economic news of the past week has been completely out of keeping with what the reports themselves merit. Whatever their stripes, politicians will turn any passing stat into a cudgel to beat the opposition with – and over the past fortnight, the coalition and their friends in the media have been eager to pass off the smallest uptick as a giant wave of optimism. Last week, the Times summoned up the requisite jauntiness: "The government may have secured the conditions for a durable recovery."The excitement generated by the economic news of the past week has been completely out of keeping with what the reports themselves merit. Whatever their stripes, politicians will turn any passing stat into a cudgel to beat the opposition with – and over the past fortnight, the coalition and their friends in the media have been eager to pass off the smallest uptick as a giant wave of optimism. Last week, the Times summoned up the requisite jauntiness: "The government may have secured the conditions for a durable recovery."
If only that were so. But such assertions owe more to wishful thinking than they do to empirical reality. Just look at yesterday's labour market report. Yes, unemployment remains relatively low given how weak the economy is – but those in work are seeing their pay (including bonuses) rise by only 0.4% per year, even while inflation is at 2.8%. Adjust for inflation and the average worker in Britain is earning no more than they were in 2000. That is a truly astonishing finding. As is the one from earlier this week by the Office for National Statistics: "In international comparisons of household income the UK has dropped from 5th place in 2005 to 12th place in 2011."If only that were so. But such assertions owe more to wishful thinking than they do to empirical reality. Just look at yesterday's labour market report. Yes, unemployment remains relatively low given how weak the economy is – but those in work are seeing their pay (including bonuses) rise by only 0.4% per year, even while inflation is at 2.8%. Adjust for inflation and the average worker in Britain is earning no more than they were in 2000. That is a truly astonishing finding. As is the one from earlier this week by the Office for National Statistics: "In international comparisons of household income the UK has dropped from 5th place in 2005 to 12th place in 2011."
Five years on from the banking crash, whether Britain is in double-dip or triple-dip recession is a matter for spreadsheet seminarians, headline writers and Westminster partisans. The reality is that we are amid a long, grinding depression that has done serious damage to the average household's standard of living. That goes double for those in part-time, temporary or other insecure forms of work. No amount of fancharts by the departing Mervyn King, or blips in the data, change that.Five years on from the banking crash, whether Britain is in double-dip or triple-dip recession is a matter for spreadsheet seminarians, headline writers and Westminster partisans. The reality is that we are amid a long, grinding depression that has done serious damage to the average household's standard of living. That goes double for those in part-time, temporary or other insecure forms of work. No amount of fancharts by the departing Mervyn King, or blips in the data, change that.
This brings us to the Commons debate last night on whether a manifesto commitment to be made by the Conservatives at the next general election ought to be passed into law. Here is a case of the Commons turning Europe into a proxy for another, more pressing issue – the slump – and using it for feverish argument. The same goes with the excitement over Ukip, whose current standing is largely a function of the political class's inability to face up to the economic mess we're in. "I am really sorry to see my countrymen trouble themselves about politics," William Blake wrote in 1810. "House of Commons and Houses of Lords appear to me to be Fools; they seem to me to be something Else besides Human Life." Few could look upon Westminster over these past few days and not sympathise with his sentiment.This brings us to the Commons debate last night on whether a manifesto commitment to be made by the Conservatives at the next general election ought to be passed into law. Here is a case of the Commons turning Europe into a proxy for another, more pressing issue – the slump – and using it for feverish argument. The same goes with the excitement over Ukip, whose current standing is largely a function of the political class's inability to face up to the economic mess we're in. "I am really sorry to see my countrymen trouble themselves about politics," William Blake wrote in 1810. "House of Commons and Houses of Lords appear to me to be Fools; they seem to me to be something Else besides Human Life." Few could look upon Westminster over these past few days and not sympathise with his sentiment.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.