Showing posts with label downturn. Show all posts
Showing posts with label downturn. Show all posts

Downturn Britain

By Michael Smith (Veshengro)

In his speech to the Tory Party Conference 2011 David Cameron finally told the people in the hall, the nation and the world at large what the ordinary person on the street has known for ages.

The Prime Minister has finally noticed that the country, that is to say, Britain, is still in a very deep recession, though to the PM it is a new one; a new recession that is, though it may also be a new one to him that the country is deep in the proverbial mass.

Britain, he said, is back – still, I and the rest of the people, say – in a recession and that the outlook is rather gloomy. Yikes! It took him how long to realize that?

Surprise? Not! We have known that all along and this shows, yet again, how far removed government is from the ordinary people that it took government, and especially the leadership, this long to realize it. With a Prime Minister like that. I am afraid to say, we are all in real trouble.

Fair dues, the Treasury was plundered by the previous Labour regime that ruled – misruled might be better a term – the country for 13 years. But that does not excuse the lack of understanding how the rest of us lives.

The PM then continued to say that we must all apply a “can do” attitude and wartime spirit to overcome this adversity.

I must say that, in a way, he does have a point as to the needed attitude but we all and especially government must come to the realization that this recession is a sign of the times and of a seriously broken economic system and model (see “Broken Economy”).

Britain has been in a downturn ever since the recession began with the credit crunch in 2008/2009 and while it came out a little it has now ended up in a double -dip recession that everyone dreaded but which Mervin King, Governor of the Bank of England, predicted and for which prediction he was castigated.

The truth hurts, as they say, and the truth is that we, as a country, are very much headed down the tube, and this tube is not the London Underground Railway of which I speak.

To our government big boys and girls all of this, and to the Prime Minister especially, seems to have come very much as a surprise and shock even. One can therefore but wonder on which planet or in which parallel universe they actually reside.

Scary, isn't it? And we allow them to run – or should that be ruin – the country. There's but one letter that makes the difference.

© 2011

Can the Recession save the Planet?

by Michael Smith

For years now environmentalists have been urging and pressurizing governments to tackle climate change – now it seems World leaders have a greater incentive – not only will green innovation help fight climate change, it will also create jobs.

The new President of the United States of America, Barak Obama, has already pledged to create 5m jobs by driving the US towards clean energy independence. Rumor has it that the devolved government in Scotland is going to announce the creation of thousands of new "green" jobs as part of its economic recovery plan.

At the World Economic Forum in Davos at the end of January /beginning of February 2009 the British Prime Minister Gordon Brown stressed the importance of cooperation between governments and the private sector in tackling climate change despite the current economic recession.

According to the British PM investment in green technology and energy efficiency could act as a spur to recovery in the global economy, he said:

“We cannot afford to relegate climate change to the international pending tray because of our current economic difficulties. We must use the imperative of building a low carbon economy as a route to creating jobs and growth, the path that will see us through the current downturn”.

So, and what after. Business as usual?

Dr Neil Bentley, CBI director of business environment speaking at the Carbon Trust’s annual stakeholder event last week said:

“Moving towards low carbon, especially in these times, is not a luxury. It is a critical issue and an important opportunity for business and for creative thinking. Where the great depression was solved by building roads and bridges, what this economic crisis needs is green innovation.”

"Climate change threatens all our goals for development and social progress," UN Secretary-General Ban Ki-moon told the world's business and government. "On the other hand, it also presents us with a gilt-edged opportunity."

"The green economy is low-carbon and energy-efficient. It creates jobs. Investment in sustainable technologies will turn today's crisis into tomorrow's sustainable growth."

But it always seems to be the economy, the economy and the economy again. The real consideration for the Planet does not really come in in this scenario, methinks.

We are still being encouraged to go and spend our way out of the downturn and this is the most stupid notion I have ever encountered.

However, with the crisis at hand and needing to save maybe, just maybe, government, industry, commerce and people in general will realize that saving energy, for in stance, makes economic and financial sense and the same as to not wasting food and other resources, such as, for instance, water.

Both climate change, whether it is man-made or, as I am believe, a natural phenomenon of the Planet ,which is probably exacerbated by our irresponsibility as regards to Nature and resources, and the depression that is looming – if it has not, in fact, arrived already – are a threat to the stability of our society and that of the world as a whole. So, if we can kill two birds with one stone (without harming a bird in the process), so to speak, by tackling the issues of climate change and the environment and the economy at the same time then the better.

What we must be considering, and it often is not being considered that, if climate change is a natural cycle of the Earth we must make preparations to live with it and hence look at ways to doing this too.

We also, while we are at it, must get away from our dependence on (foreign) oil and gas and find natural sources of fuel – without, however, having to use food crops for it – in order to fuel our power stations to generate electricity. Also, we must get away from our love affair with the ICE, the infernal combustion engine, and this regardless of whether the outputs of such is affecting or causing climate change. The general pollution caused by the millions of cars on our roads is enough reason to look at clean alternatives.

All of this could fuel innovation and new industries. At the same time some of the old skills, crafts and industries too may find revitalization, such as shoe mending, and other repair skills.

The trade of he wheelwright even and the farrier might become in fashion once again for we could do worse than, in some regions at least, adopting some of the ways of the Amish, for instance.

The horse is already for some time again proving its worth in forestry operations and, I am sure, it could, once again, be viable in other sectors too.

The bicycle for transportation should be considered again, as it is by some folks already, in Europe and also the UK, though there is still a way to go in places such as the USA, and bike repair could and should be a trade again that could blossom.

Why do we need to constantly look at exports? We should look at doing and making things at home for the home market at reasonable affordable prices. How can it be possible to make thin gs so cheap that while they are made in China and then shipped all the way from there to here they are still only half the price if not less even than the, supposedly, could be made for at home. Somehow this, in my opinion, does not compute.

We are being taken for a ride, methinks. Let us demand “Made in Britain”, “Made in America”, etc. at a price that is the same or maybe just a little more than the cheap labor exploitation stuff from Asia. It is corporate greed that says it cannot be made cheaply at home; nothing else. So, at least, I see it.

© M Smith (Veshengro), February 2009
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Be thrifty in the downturn

by Michael Smith

Cooking with leftovers, swapping clothes, growing vegetables, baking bread... all of it is coming back in vogue.

With recession worries growing in the United Kingdom, and elsewhere, no doubt, people are trying to rediscover the ways things were done in years gone by and how people adapted to the dire shortages of World War II and the Great Depression before that. Books on that subject are now well on the way to becoming the new bestsellers. In the same way, I should think, books that describe the skills of even farther back will too.

There is a slow-down in the housing market, which makes everyone feel less confident financially. Credit not only will be harder to come by, it is getting harder to come by. We all should and more than likely may soon have to be tightening our belts. The lest we must learn to – once again – live within our means and not beyond them. If you have not got the money saved to buy this or that then, well, you cannot buy it and, as far as I am concerned, that also applies for a car. With a house it may be a little different, I grant you, but in general the way should be that if you have not got the ready money in cash or in the bank account then you will just have to wait until you have managed to save up for it.

It's not quite as difficult as it sounds. Recession thinking tends to be practical but also ordinary and rather simple. Most of it sure is not rocket science.

Switch off the lights when you leave the room. Turn the heating down and put on a sweater. Turn off the tap when cleaning teeth and take showers instead of baths. Take your shoes to the mender rather than throwing them away.

The biggest problem at times is that, in our throwaway society, it is often cheaper to buy new than to have something repaired. This is utterly stupid, I know.

Personally I find it ridiculous that a printer, for instance, that costs £30 the company wanted to charge over £100 for repairs and when they were told that for that time about three of those printers could be bought the comment just was “suggest you get a new one then.”

Folks are also starting allotment gardens again and those with gardens at their own homes turn much of it over to food production.

Geoff Stokes, of the National Society of Allotment and Leisure Gardens, says that demand for allotments has been so huge that some London boroughs have a 10-year waiting list.

There are area though also where allotments are still going begging and no one has as yet taken a real interest in the plots, and that in areas in the outer boroughs of London.

"Fresh air, exercise and fresh food, what could be better?" says Geoff Stokes. "And because so many younger people have started working on allotments, and mothers come with their children after school, there tends to be a real community spirit."

Here are some tips from the book “Austerity Britain 1945-1951” that might come back into vogue:, and not too soon either:

1. Turn over old cuffs and collars: If a shirt cuff or collar looks frayed, instead of throwing the shirt away, simply turn them over.

Though there is a problem with that too and that is that, unlike in the days of old, collars and cuffs are rather attached and unless one is rather good in sewing it might b e a slightly difficult affair.

2. Refashion old sheets: There is an old phrase, "sheets sides to middle," which refers to the fact that bed-linen tends to wear out more in the middle. During the war, women would cut threadbare sheets down the middle, turn them over, then sew them back together.

3. Make the most of leftovers: In the spirit of thrift, nothing should be thrown away. Therefore leftover vegetables become bubble and squeak; the Sunday roast becomes Monday's cottage pie.

In order to do that, however, people will have to learn, once again, how to cook from scratch. “bubble and squeak” and “cottage pie” are not made in a microwave.

4. Create a soap ball in the kitchen: Collect tiny fragments of soap from elsewhere in the house, then stick them together to form a soap ball for the kitchen or scullery.

5. Wash and re-use silver foil: A common practice in the '40s and '50s, typical of that generation's attitude to recycling.

6. Buy from thrift stores and Charity Shops rather than new as and where practicable. I do for most of my clothes and books.

7. Walk, use public transport or cycle instead of using the car or taxis. Not only does this save yu money; it also keeps you fit – well, the walking and cycling at least.

8. Cut out the latte in the coffee shop and have ordinary coffee at home. Take your own homemade sandwiches and a thermos flask of coffee to work with you.

Look after the pennies, and the pounds will look after themselves and it can be incredibly rewarding, this lifestyle.

Thrifty thinking is also about making creative, imaginative choices, even down to the cuts of meat you buy. Then again, does it really have to be meat all the time and nigh on every day. It did not used to be thus. Meat was for the more special occasions, and that includes chicken.

Thrifty food shopping is not only restricted to meat. Buying vegetables in season is also recommended and being experimental.

Again, however, the being experimental is linked to actually being able to cook from scratch, a skill which, alas, is sadly missing with so many people nowadays.

The current way of waste is not just scandalous, it is, in fact, immoral and must be stopped. We got into the habit of being sensible in the war; we managed beautifully when money was scarce. We used up our food instead of throwing it away.

We live in a disposable culture; everything is designed to have a short life, to be thrown out and replaced as soon as it no longer works – or even before that when it is “obsolete”, according to the manufacturers. No one has any idea how to mend things or repair them or when they do then the charges are astronomical and one can buy new several times over. Other things hjust are designed not to be repairable. This is not sustainable.

It is not only that we cannot do this ourselves – in fact many electrical things you are, theoretically, no longer allowed to fix yourself - it's almost impossible to find someone who will repair a toaster, say, because toasters have become dirt cheap. All this makes people think very little about stuff - where it comes from and the effort and energy that has gone into making it.

If you can buy a new T-shirt for £1, why bother to mend it when it gets ripped, so at least the attitude of the masses. I was taught me to mend stuff. We had leather patches on our jumpers,on the knees of our pants – or patches from other pants - but you never see a man with that these days, unless they have stitched on by some fancy designer.

Being from a large Gypsy family I was raised with the values of “waste not, want not” and not just as regards to food. Clothes were hand-me-downs, often that our Mom got given by people when out “calling”, that is to say, hawking. Shoes were only worn, I must say, at certain times of the year and occasions. Toys were very rare and certainly things that had been someone else's before us. I must say though that we did not even mind. At least I cannot remember ever doing so.

How many things might you not have to spend money on buying if you could and would make them for yourself either from scratch or by reusing or re-purposing some items of what would normally considered trash. It is always a challenge to me to see what I can turn this or that item of trash into for use on my desk or elsewhere in the home or office.

Our parents and grandparents re-purposed glass jars and tin cans for various tasks, from keeping buttons in them, or nuts and bolts, to measuring cups and a variety of other uses.

In an economic downturn heading for a recession and may be even, as some analysts of the economy reckon, a depression that could equal the Great Depression of the 1930s, such measures must be employed for sheer survival. In addition to that it is good for the environment and the Planet too.

© M Smith (Veshengro), February 2009
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Spending our way out of the downturn

by Michael Smith

For years and years, especially as regards to the environment and such, we have now been told to get away from being too much of a consumer and consumption society and now, with an economic crises at hand, for it no longer just looming, folks – it has well and truly arrived, we are encouraged by various government measures to go out and spend, spend, spend. Doh?

I personally cannot see how this spend, spend, spend, thing is, supposed, to help the economy and I also cannot see people doing it. What I can see people doing is in fact to hold on to their money in the hope that things are going to get cheaper still., and things will in the end. We are headed, in Britain at least, rapidly for deflation and this means that things will get cheaper and cheaper and people, and that is human nature, are NOT going to buy something now, this very moment when, more than likely, the same product if 20% cheaper by next week or so.

The British Chancellor of the Exchequer, the Secretary of State for Finance, Alistair Darling, has decided that is exactly what they are trying to do, namely to get the public to go out and spend and spend. With this in mind he has reduced the VAT, the sales tax, by 2.5% from 17.5% to 15%, something which has caused nothing bu extra work and cost for retailers who had to adjust all their tills and all their prices. What he should have done instead, if he thinks that lower taxes will make people go out and spend their way out of a recession – not that that is going to work – is to lower the income tax, especially for the lower earners. But he did not do that.

Other governments in the developed world are implementing or are considering similar fiscal measures. The problem is that, so I see it, this is going to do absolutely nothing; nothing whatsoever, and we will be in a recession and deflationary depression faster than we can imagine by going down this route.

OK, I admit, I am no financial whizkid now expert or analyst but I can sure see the writing on the wall and I can see what people are going to do. They are going to say “thanks, Chancellor” and the money will stay in their accounts or pockets.

In times as uncertain as these no one in their right mind is going to go on a spending spree to help the general economy; they are going to tighten their purse strings for the “just in case”.

We are also currently in the, what could be called, “austerity chique” in which even the better off and those with a job are digging up their gardens, or quite a sizable chunk of it, in order to plant and grow vegetables for themselves and their families. Some do it for reasons of wanting some more organic vegetables and also wanting to know where the food actually comes from and what is it it, and others also may do it because it is at present the in thing to do.

This thing of “spend, spend, spend” is morally irresponsible and unsustainable as most of the people of this country and, I guess the same is also true in other countries, and the country itself are deep in debt, to banks and credit card companies. However, we do not seem to learn the moral lesson from this and the government is trying to simply get people to spend more and more. This is simply not sustainable and sustainability is not just something that we must look at as far as the environment is concerned. Our entire life must be, once again, sustainable but it is not – presently – and the government, as said, is not helping here by encouraging spending in order to, hopefully, revitalize the economy. Revitalize it in what way, that must be the question. For corporate greed to be able to continue as is?

The truth is, as said before, that the common punter is not going to go out and spend any money that they may b e “handed” by the government. The current huge amount of government borrowing by the British government as much as others, though the British seem to be one of those that really think that they can get out of problems by borrowing such humongous sums, is not sustainable and means that the public will be hit by tax hikes in the not so distant future. In view of the fact that such borrowings, as said, means more taxes to pay for this later, people are not going to go out onto the High Street and spend all this money that they are receiving by cuts in VAT and such. They are going to keep some of it if not indeed most of it back for the “in case”.

A “spend, spend, spend” approach that we are being encouraged to take up is a non-sustainable way to go and it much be discouraged rather than encouraged.

Are the government of this country, and others, really thinking that we can buy ourselves out of an economic downturn?

Apparently yes. Cloud Cuckoo Land comes to mind, does it not.

Instead of telling the people to take steps and protect themselves in this economic downturn and to make provisions they think that if people will go out with a little extra money and spend that in High Street shops and the department stores of this country. It is NOT going to make any difference and people are not going to go out and spend, spend, spend.

We are seeing already that they are not going to that. Instead they are holding back, though sales have not completely gone down the drain as yet on the High Street, but then it is the Christmas period and also stores are having pre-Christmas sales to lure the punters in.

People are going, and that is becoming slowly obvious, to hold back in general with spending, waiting for prices to fall further. This means that we are headed towards deflation in due course and instead of the economy picking up it will be doing the opposite. And as soon as this is going to become evident to people they will hold back even more when it comes to spending on the non-essentials.

Talks about prices going down does not seem to be working, as yet, at least not as far as food stuffs is concerned. Here prices seem to be still on the up in most places if not indeed all.

Oil prices, on the other hand, do seem to be falling, and not just in the global wholesale market. Even at the pumps we are seeing prices coming down. Whether that will also be seen as price reductions to the home energy consumer, as regards electricity and gas remains to be seen. The problem simply is that the energy companies are way too greedy, even those that claim to have ethics.

But whatever, we cannot spend ourselves out of an economic downturn that is about 2 seconds away from a recession and not all that far from a depression even. It is just the same madness as the way we have dealt with the natural resources. We have spent, spent, spent until now everything is polluted and nigh on gone.

There is only one way out; on both counts: Cutting back and living a simpler life. Period.

© M Smith (Veshengro), December 2008
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