Wow!

Figures published on Friday are likely to provide official confirmation that Britain is in recession for the first time since the early 1990s.

Ya think?

Analysts expect the economy to have shrunk a dramatic 1.2pc in the final three months of the year after contracting 0.6pc in the third quarter of 2008.

1.8% (ignoring compounding). That\’s the fall in value added. The sort of amount that a roughly liberal capitalist economy grows by each 6 or 8 months. As indeed our own has for a couple of centuries or so. With, it has to be admitted, the odd hiccup.

But I\’m still not sure that the existence of such hiccups, given the long term success of the system, is quite as powerful an argument for the "death of capitalism" as some seem to think.

What comes next is going to make the various arguments all that much more interesting of course…

5 comments on “Wow!

  1. Even Obama, supposedly a closet Lefty, isn’t stupid enough to think that the solution lies in destroying capitalism.

    Just like Blair, Obama is a Lefty who realises that actually harnessing the market economy is the way to win elections.

  2. We live in a mixed economy: part capitalist and part statist. The mix varies with government.

    Over the last 11+ years in the UK, the mix has moved firmly to be less capitalist and more statist. Therefore how possibly can the current crisis be viewed as evidence of a failure of capitalism in preference to evidence of a failure of statism.

    Best regards

  3. What I find puzzling is how such a small GDP percentage lose (6 to 8 months growth) should have such a road crash effect on the british economy.

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