Not a lot actually.
I explained there are four ways to generate income growth in the UK. One is to increase consumer spending. Another is to stimulate business investment. Then there is extra government spending. Finally there are growing exports. And that’s it.
The trouble is consumer spending is falling as incomes decline.
And companies are not just not investing, they’re saving like mad.
Whilst the government is slashing spending.
And our export markets are collapsing into chaos.
Oh, right. So the recent trade figures:
UK exports surge despite the eurozone crisis
• Trade deficit came in at £7.8bn, down from £8.2bn in July
• Exports rise to £25.5bn
So Ritchie and the real world seem to be at loggerheads.
It\’s not as if surging exports are all that much of a surprise either. We have had quite a large currency depreciation of late. You know, same thing that pulled the UK out of the Depression back in 1932/3?