UK Economy Unsustainable?
I noticed this story about Revere Award winning Economist Professor Steve Keen talking about the sustainability of the UK economy and I wondered what fellow group members thought?
He says that the UK's economy is highly speculative and that if property prices don't rebound then the last few generations will wake up to realise they have been investing in a huge ponzi scheme (pyramid scheme).
On a topical point, (given the recent Skintland cover of the Economist) he claims that it would be a good idea in economic terms for Scotland to get out of the Union with the rest of the UK. The often stated argument that the UK offers financial security to Scotland through the Union because of its size, could well prove to be counter productive.
Having lobbied members of the BoE Monitory policy committee in person in 2008, stressing the same issues as Professor Keen is raising here, (just to be told we had never had it so good) I think its a refreshing look at the sustainability of the UK economy. Its not just credit card and personal debt, but mortgage debt that will slow growth and possibly even drive us into a depression.