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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.

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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.

economist 1

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

God help us.

 

4 comments to The utter stupidity of economists and economic models

  • brian

    I have tried to explain this to various people in the pub, at work, on the bus, at the clap clinic and even at the local brothel, and nobody appears to be able to quite get it. Why is this so difficult for people to understand ?

    I think in future, I will simply print this blog out, laminate it, and then just pass it round to anyone even vaguely interested.

    Once the skills are lost and the supply chain destroyed, no amount of kick start initiatives makes any difference.

    Do you think that Millipede, Cameroon or that preposterous fraud, Vince Cable, could ever grasp this ?

  • Keen Reader

    “Do you think that Millipede, Cameroon or that preposterous fraud, Vince Cable, could ever grasp this ?”
    Of course they grasp it – they just hope that we ignorant plebs don’t. Why else is Schoolboy Georgie today preparing us for the coming election by proclaiming that further impending bad news on the UK economy is all down to failures within the Eurozone?
    (I say “further” bad news because despite all the carefully crafted lies about recovery that have been fed us over the past several years, the UK is effectively bankrupt and things can only get worse.)

  • Dr R D Feltham

    “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.” Exactly! These fools given positions of authority have no understanding of what made Britain once the workshop of the world. They do not understand what the total required resources are or now would be to rebuild UK manufacturing; we now after decades of stupid politicians destroying their own and our country by their successive fatuous policies lack the facilities, human highly-skilled resouces and significant levels of capital investment necessary to revive any modern manufacturing industry. We have now already fallen too far behind and are in the same position as an emergent nation state, in line to become a bannana republic but without any bannanas to sell! “If the blind shall lead the blind then both shall fall into the ditch.” These fools have led us into the pit of hell from which there is now no escape.

    You could pupport to blame the politicians for this idiocy, but in the end, in a supposed democracy it is the people, who are the electorate who are to blame, because they continued to vote these fools into successive power to wreak the havoc and destruction which they have wrought, by continuously voting for more of the same punishment, i.e. Lib/Lab/Con!

  • BaronessBonkers

    “Things can only get worse. Is that a follow up to “Things can only get better”?

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