Quote:
Originally Posted by Ignitionnet
No they don't. If we can fix our productivity issues we will generate the tax revenues we require to properly fund our public services without borrowing more.
We've done nothing to address them, unfortunately, we've managed to create an economy where many are employed but many of them aren't very productive.
Time, perhaps, to take a different approach involving investment in education, infrastructure and trying to light a torch under our private sector. Public investment has been too low for too long and private investment has started tanking too.
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I want to cut through endless debate on this topic, so I will explain the rationale (as I understand it) underpinning this and future debates.
The world's problems stem from overpopulation. Simply put, the less of us on this planet, the better it is for those who remain (within reason). Overpopulation impacts our lives through immigration and resource shortages. An economy is built on energy and sustained by it. The richest economies in the world have a relatively low population and access to a surplus of energy resources, in the form of petroleum, coal, uranium and natural gas.
Almost all western countries are net importer of oil. Peak oil production, globally has already taken place and countries who adhere to the basic tenets (as outlined) are electrifying their transportation system.
The UK has already begun with infrastructure projects such as crossrail and HS2. Hinkley point C and Bradwell nuclear power stations are meant to replace some of our existing nuclear fleet. Although more will have to be built if the country is to transition away from fossil fuels and power the new infrastructure.
In addition to this there's wind farm projects like the London array, Walney Extension, Greater Gabbard among others.
It would be remiss of me, if I wasn't to admit to the short comings of renewable energy, especially energy density and transmission loses. But I will say it's currently our only, realistic, hope of maintaining our standard of living beyond this century.
In regards to productivity, we can't compete with wages from China and India. That's the long and short of it.