Mediamacro Myths: Summing Up
The storey presented inward much of the U.K. media is uncomplicated as well as intuitive. The previous authorities messed up: they spent likewise much, as well as it left the U.K. economic scheme on the brink of fiscal meltdown. The coalition came to the rescue: clearing upwards the mess was tough at first, but forthwith it is all coming good.
In previous posts I direct keep shown that this is almost consummate fiction. The increase inward the government’s budget deficit nether Labour was all nigh the recession, which inward plow was created yesteryear the global fiscal crisis. There was no prospect of a U.K. fiscal crisis inward 2010, which meant that austerity was non something the authorities was forced to undertake. Reducing the deficit could direct keep been left until the recovery was secure (and crucially involvement rates had risen higher upwards their lower bound), but the coalition chose to produce otherwise. As a number they delayed the recovery yesteryear 3 years, at great cost. Even since 2013 nosotros direct keep only seen a furnish to normal growth rates: at that topographic point has been no catching upwards of lost ground. In that feel growth nether the coalition hardly deserves the term recovery, as well as nosotros direct keep seen an unprecedented lack of growth inward living standards. Productivity growth has been non-existent, yet the authorities has feted the occupation growth that is its counterpart.
The government’s claims of macroeconomic success tin hence survive dismissed without proverb a discussion nigh the nature of the gross domestic product growth that has taken place. But what growth at that topographic point has been is itself worryingly unbalanced, every bit a novel written report was at best precisely average, as well as growth inward income per caput non-existent.
It is withal commonplace to listen media commentators tell that the economic scheme is doing great, as well as enquire why the authorities is non reaping the produce goodness inward price of political support. In truth the puzzle is the contrary - given how piteous economical functioning nether the coalition has been, as well as that this piteous functioning has hitting most people inward their pockets, the existent puzzle is why then many people recall the authorities is economically competent. And the answer to that puzzle inward plow lies inward the myths that mediamacro has allowed to teach unchallenged. Perhaps the latest growth figures mightiness laid out to dent them, but a remarkable characteristic of these myths is that they look impervious to actual data.
I coined the term mediamacro because I apparently abide by it foreign that world discourse on the macroeconomic fortunes of the U.K. economic scheme seems then dissimilar from what the information as well as uncomplicated economic science would suggest. For i time I tin survive the i handed economist that Truman demanded, because the bear witness is then clear as well as the economic science (what little at that topographic point is) then uncontentious. But mediamacro has implications good beyond macroeconomics. If the media has been capable of distorting reality yesteryear then much for then long inward this case, are at that topographic point other areas where it has done the same, as well as what does that tell us nigh the wellness of our democracy?
Previous posts inward this series
(3) The 2007 boom
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