One of the things its fairly important to get to grips with is costs and benefits. The Senior Lecturer fails:
For he tells us that:
And you wonder why I say I think we need investment in infrastructure? Look at the company we keep in Europe:
read that chart again
That is pretty embarrassing and a damning indictment of UK government policy.
Here’s how Ritchie is reading it. We’ve got public capital like Greece. Spend more!
Here’s how it should be read. Being the richer and further to the right is winning. Being poorer and further to the left is losing.
For what is this chart? The stock of public capital per capita, expressed as a gap from EU average.
That is, this is a chart of the cost of investing in public infrastructure etc. The Professor of Practice insisting that it is shameful, shameful, that the UK keeps company with Greece on such things.
Hmm. But what we should actually be interested in is how rich are we? Not how much we spend, but how rich are we? The UK is richer than all those to the right. But it’s also significantly richer than several of those to the left. Meaning that we’re producing more wealth, more GDP, from less public capital stock. We are, therefore, more efficient at converting capital stock into income.
I dunno, PFI maybe?
But the why isn’t as important, the message of the chart is. The UK produces more, does better, from each unit of its capital stock than poorer countries like Greece, Portugal, Romania and so on do. This is good news for the UK.
Not an insistence that we must SPEND MOAR!