According to the government, the UK economy is on the mend due to their austerity policies. Carefully spun figures paint a rosy economic picture. However, beneath the spin, the longest squeeze on incomes looks set to continue and we won’t get a real recovery until people see their real wages rising again...

1. THEUK
ECONOMY
UNSPUN!
Let’s get started…

2. According to the
government our economy…

3. According to the
government our economy…

4. According to the
government our economy…
is on the
mend thanks
to their
austerity
policies

5. However,
that’snot
entirelytrue

6. However,
that’snot
entirelytrue
Let’s start unspinning…

7. 27500
28000
28500
29000
29500
30000
30500
31000
They say: “There are a record
number of people in work”
Number of people in work

8. 27500
28000
28500
29000
29500
30000
30500
31000
They say: “There are a record
number of people in work”
Number of people in work
This is technically true but…

9. 27500
28000
28500
29000
29500
30000
30500
31000
…there are also a record
number of people!
Number of people in work

10. 27500
28000
28500
29000
29500
30000
30500
31000
…and here’s how many jobs we’d need just
to keep pace with the rising population!
Number of jobs needed to keep
up with 2008 employment
Number of people in work
…there are also a record
number of people!

11. 86
88
90
92
94
96
98
100
102
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
They say: “Rising GDP is
a sign of recovery”
GDP

12. 86
88
90
92
94
96
98
100
102
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
True, after a slump, GDP
is on the rise again…
GDP
They say: “Rising GDP is
a sign of recovery”

13. 86
88
90
92
94
96
98
100
102
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
GDP
GDP Per Head
…but growth has been boosted
by a rising population
…and GDP per head is still
lower than in mid 2010

14. 0
10
20
30
40
50
60
70
80
They say: “We need to slash spending
as the national debt is so large”
Government Debt/GDP (%)

15. 0
10
20
30
40
50
60
70
80
They say: “We need to slash spending
as the national debt is so large”
But, historically, it’s been
much larger…
Government Debt/GDP (%)

16. 0.0
50.0
100.0
150.0
200.0
250.0
300.0
1855-56
1859-60
1863-64
1867-68
1871-72
1875-76
1879-80
1883-84
1887-88
1891-92
1895-96
1899-1900
1903-04
1907-08
1911-12
1915-16
1919-20
1923-24
1927-28
1931-32
1935-36
1939-40
1943-44
1947-48
1951-52
1955-56
1959-60
1963-64
1967-68
1971-72
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1999-2000
2003-04
2007-08
2011-12
In reality, the UK has had much
higher debt/GDP in the past…
They say: “We need to slash spending
as the national debt is so large”
Government Debt/GDP (%)
Government Debt/GDP
since 1990, as shown on
previous graph (%)

17. The UK economy is finally starting to
grow again but the recovery has come
three years later than hoped for.

18. The UK economy is finally starting to
grow again but the recovery has come
three years later than hoped for.
The longest squeeze on incomes looks
set to continue and we won’t get a real
recovery until people see their real
wages rising again.

19. We need investment
in growth and jobs

20. We need investment
in growth and jobs
not complacency & spin!

21. Stayuptodatewiththe
latesteconomicnewsat
touchstoneblog.org.uk