The utter stupidity of economists and economic models

I went to a presentation this week by a ‘leading economist’ on how to revive the British economy.

This great economist – a well-paid adviser to government – started by briefly talking some sense. In 1970 manufacturing accounted for about 32% of the UK’s output and now it’s down to just 10%. Almost no economy can survive unless manufacturing is at a minimum of 15% of GDP. So far so good. That makes sense. A country can’t earn a living unless it has resources like oil or makes things other countries want to buy.

Then the great economist started talking utter b*ll*cks. According to his theoretical economic model, if we could reduce the value of the pound by about 20%, then our exports would start growing and manufacturing would increase as a percentage of GDP making the British economy successful again. There’s only one problem with this – it’s not what happens in the real world.

Let’s imagine a traditional Northern England industrial town. We’ll call it Karachi-on-Tyne. And let’s imagine there are a few factories in Karachi-on-Tyne. Gradually over the years the pound goes up in value making these factories in Karachi-on-Tyne uncompetitive compared with factories in China.

One by one the British factories close down, people lose their jobs, the premises become derelict or are knocked down to make way for new Tesco superstores or housing estates for benefits-dependent, Britain-hating immigrants. Moreover, the people in the companies supplying those factories also lose their jobs. Then the main activities in Karachi-on-Tyne are collecting benefits, driving taxis and raping underage white girls.

Now, let’s test the great economist’s theory. As the Government is not taking enough in taxes to pay for all the services and benefits it has promised to Britain’s rapidly-growing largely immigrant population, it has to borrow and borrow and borrow. Eventually financial markets lose confidence in Britain’s economic management and there is a sterling crisis. Suddenly the value of the pound drops by 20% to 25%.

According to the great economist and his great economic model, the drop in the value of the pound makes British goods competitive again, the factories in Karachi-on-Tyne can now export again and British manufacturing will grow. The inhabitants of Karachi-on-Tyne will then be able to get jobs making things, will drive fewer taxis but will keep on raping underage white girls.

There’s only one problem. The factories in Karachi-on-Tyne have gone. In their place are Tesco superstores and housing estates full of benefits-dependent, Britain-hating, gang-raping immigrants. Moreover, the former suppliers to the factories in Karachi-on-Tyne have also gone bankrupt.

In the great economist’s model, the fall in the value of the pound should have led to a surge in manufacturing and exports. Even a total nincompoop can see this can’t work in the real world as the factories in Karachi-on-Tyne have all closed down.

And buffoons like this great economist with his economic model are advising the Government and deciding Britain’s economic policies.

God help us.