IN the 1930s, economics was perceived as the Dismal Science, In the ‘never had it so good’ period, economists argued that the perception was no longer valid.
The September UK trade figures showed total exports equated to £24.5billion and total imports equated to £34.3billion. The difference amounted to a record trade deficit.
In 1993, there was a record budget deficit of more than £50billion. In 2010, there was a record budget deficit of much more than £150billion.
An analysis of the National Income and Expenditure Accounts from 1979 revealed the public expenditure on social services (education, health and welfare, social security) has soared incredibly. Why?
In the 1980s, unemployment increased to the level of the 1930s. British industry became less labour intensive and more capital intensive. The advanced technology of mass production (aided by robots) superseded production by the masses.
Economists speculate about the types and persistence of unemployment. However, unemployment is a miserable condition and work is essential to contribute to the formation of human character.
The Free Trade and mobility of labour argument by economists is losing its persuasive effect. The national, social and psychological criticisms make an undeniable case for Limited Free Trade and mobility of labour.
According to the Treasury Books, the UK constantly loses billions of pounds on our foreign exchange with the EU. In 1972, the Prime Minister argued that joining the European Common Market would benefit UK trade. It has been a disastrous experiment.
In 1980, the National Debt was £95.5billion. It is now more than £1,000billion. The interest paid on the National Debt is a heavy burden and it will increase in weight. Economists claim that the UK has been living far beyond its means.
It is absurd to imply that the unemployed have been living far beyond their means. Paradoxically, poverty has been increasing, as well as the number of millionaires.
The perception of economics as the ‘Dismal Science’ remains valid.
Downview Road, Worthing