"Rebalancing the economy - it has become a mantra in Whitehall, the Bank of England and the world of economic think tanks." But why?
It is up to you Year 12 to investigate!
In your research you need to find out what is going on with the UK's Current Account Balance of Payments, why a deficit might be a problem and how it can be solved. What does George Osborne think needs to be done?
Look here for more information...
Arousing.
ReplyDeleteAgreed
DeleteThe 're balancing' of the economy is calling for the UK economy to shift from being an import reliant economy to a more exporting economy, urging for the industry sector to expand and start producing more to be exported. At the moment the industry is only 12% and even finance measured with the business sector outweighs the manufacturing industry as a proportion of the UK's GDP. Mr Osborne is injecting money into science and apprenticeships and is backing new high-speed rail lines, which could provide some immediate demand for manufacturers, therefore increasing the manufacturing sector's share of GDP.The state should invest subsidies into factories and invest in physical labor to attempt to increase the jobs in the manufacturing industry, making it possible for the industry to expand and therefore impact on the BOP. Ministers are also urging to re balance the South- East which is one of the most productive areas of the UK.
ReplyDeleteIt is encouraging to see percentage of jobs being provided in health and education is increasing, which is a good supply side policy, so for the long term i think this will benefit the economy. This is a perfect example of the UK government aiming to increase the production of intangible exports.
ReplyDelete