THE ECONOMIC RECOVERY IS A “STATISTICAL ILLUSION”: MORE MISLEADING OFFICIAL EMPLOYMENT FIGURES.
As claims of economic recovery take hold on either side of the Atlantic, there is a risk that Occupy and other activists will struggle to gain sufficient momentum to halt the dismantling of health, environment and social protections and challenge the austerity prescription. No doubt most people are much poorer than five years ago but now that credit is being used to take up the slack, there is a feeling in financial and government circles that the worst is past and we’re on the road to redemption.
The snag is that economic recovery is at best, limited to those near the top of the wealth, income pyramid and at worst, a fabricated illusion boosted by a media that is dominated and controlled by those with a vested interest in money creation driving their wealth to ever higher peaks.
This article by former Assistant Secretary of the Treasury for Economic Policy under Ronald Reagan, academic and journalist, Paul Craig Roberts, highlights how the illusion of a recovery in US economy has been fabricated. A similar exercise in the UK/Europe would be interesting.
The Economic Recovery is a “Statistical Illusion”: More Misleading Official Employment Figures.
The final paragraph puts the icing on the cake: “the economic recovery is a statistical illusion created by deflating nominal GDP with an understated measure of inflation.”
George Osborne’s choice of numbers for the UK deficit (what used to be referred to as the Public Sector Borrowing Requirement PSBR) understate the real number (according to a report on the government’s accounts). The ONS figures, which Osborne used, show a deficit of £90 billion whereas the report says the figure is more than double, 185bn.
The commercial, private and government debt mountain continues to climb, as it must to sustain the economic system which continues to drive inequality, competition for resources and environmental destruction, while encouraging corruption and fraud.