Everything we thought we knew about the economy is wrong

Well the UK is taking steps to become a true banana republic, bought and paid for by corporates and using accounting fraud to mask the issues of the economy. Don’t worry, Big Dave and hokey cokey Gidion have a plan to include ‘illegal’ activity, R&D spending and a wholehost of other nonsense. Not only does this lead to a monumental misallocation of resources and lulls people into a false sense of security but it gives the corrupt media a siren song to sing about.

Just remember, they’ll tell you it’s raining while they’re stood overhead pissing on you. Courtesy of Allister Heath @ City AM:

FACTS are sacred, unlike mere subjective opinions – or so most sensible people believe. In reality, as every good French philosopher would tell you, what we trust to be objective data-based truths all too often turn out to be social constructs. We are about to see a beautiful demonstration of this with the British economy, where the official statisticians will shortly entirely and drastically rewrite decades of history.

Everything we thought we knew – all the “facts” – are about to change. This is massive news for anybody who cares about the UK economy, politics and public policy; the last time a similar rewriting took place was when the UK’s economic statistics were harmonised with those of the rest of the EU many years ago.

One change will see research and development spending classified as capital expenditure; at a stroke, this will raise the level of the UK’s economic output by a cool £25bn. That’s just the beginning: overall, the statistical deckchair shuffling will boost the size of the UK economy by between 2.5 and five per cent, a shockingly large amount (and a vast range that makes it hard for outside forecasters to be able to predict exactly what the Office for National Statistics (ONS) will come up with).

Nothing real will have changed – but we will all officially be substantially richer. Hurrah – who said economic growth was hard to come by? The changes will start to come into effect this year but there is an “ongoing programme of work until 2017”; the ONS will publish various pieces of research this month and in May. Continue reading