The Full English Accompaniment – Why a seismic economic shift won’t happen.

The end of the month fell since the last Full English. That means a link-fest below. To save time for all the other writer’s out there I only have a few short thoughts today.

A YouGov/ New Economics Foundation poll published in the Guardian this week demonstrated that 31% of people want to see big changes to the global economy in the wake of the COVID-19 pandemic, with only 6% wanting no changes (1). I take any poll or news-worthy statistic with a pinch of salt, especially those espoused to support lefty claims in a lefty rag. However it makes sense, we’ve all experienced big changes through lockdown:

  • Less commuting and more working from home
  • Supply chain changes, less in the shops, more available locally
  • A push to support local businesses
  • Less spending for the sake of it on consumerist tat (because the shops have been shut).

Why not take this opportunity to change things? The Government is already bankrolling huge sectors of the economy. Now is the perfect time to do the big rejig. Perhaps switch towards:

  • renewable, green energy and policies (2)
  • home-working supported by massively improved infrastructure
  • on-shoring industries to support rapid supply chains.

But we won’t. For two reasons.

  1. Inertia (3)
  2. Management.

People do not like dramatic change. Individually we may find it exciting and exhilarating. The potential. The opportunities.

That requires you to get up and do something about it. And we’re fundamentally lazy, stupid, panicky animals. We are much happier doing things the same way we’ve always done than having to learn something new. It requires effort, and motivation. Motivation on a national scale is a challenging construct.

The top level management are also not going to be on board. They have a vested interest in the status quo, it’s how they got there, it’s how they get power/money/fame (delete as appropriate). Why would they risk that?

Plus when have top-down restructures worked well? The Government’s management of the COVID tracking system says enough here.

So, like Soho’s pubs, we’ll soon be back to where we were before. Minus a few tens of thousand dead.

Have a great week,

The Shrink

News:

Opinions/ Blogs:

References:

  1. https://www.theguardian.com/world/2020/jun/28/just-6-of-uk-public-want-a-return-to-pre-pandemic-economy
  2. https://www.forbes.com/sites/joanmichelson2/2020/06/30/how-to-rebuild-the-economy-and-create-jobs-with-clean-energy-innovation/
  3. https://indeedably.com/inertia/
  4. https://www.bbc.co.uk/news/business-53222765
  5. https://www.economist.com/finance-and-economics/2020/07/04/a-latin-american-economic-tragedy
  6. https://www.thisismoney.co.uk/money/cars/article-8475855/No-road-tax-cheaper-run-E-car-recharge-finances.html
  7. https://www.theguardian.com/business/2020/jun/30/tesla-shareholders-urged-to-oust-elon-musk-over-55bn-pay-deal
  8. https://www.theguardian.com/money/2020/jul/01/uk-annual-house-prices-fall-for-first-time-since-2012-coronavirus
  9. https://www.theguardian.com/business/2020/jun/29/central-banks-could-face-political-pressure-to-allow-high-inflation
  10. https://www.bloomberg.com/news/articles/2020-06-28/the-future-of-inflation-is-the-biggest-question-in-finance?amp_js_v=a3&_gsa=1&usqp=mq331AQFKAGwASA%3D#referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2020-06-28%2Fthe-future-of-inflation-is-the-biggest-question-in-finance
  11. https://www.bbc.co.uk/news/business-53272411
  12. https://www.moneymage.net/2020-june-savings-report/
  13. https://www.onemillionjourney.com/portfolio-update-19-june-2020-100347e/
  14. https://firevlondon.com/2020/07/04/june-2020-disadvantage-month/
  15. https://awaytoless.com/monthly-spending-june-2020/
  16. https://thesavingninja.com/savings-report-24/
  17. http://quietlysaving.co.uk/2020/07/01/june-2020-plus-other-updates/
  18. https://gentlemansfamilyfinances.com/2020/07/01/month-end-june-2020/
  19. https://playingwithfire.uk/june-2020-life-spending-and-investment-update/
  20. https://www.thefrugalcottage.com/dividend-income-june-2020/
  21. https://moneygrower.co.uk/june-stock-purchase-the-new-economy/
  22. http://fiukmoney.co.uk/june-20-net-worth-and-monthly-update-22-569037-13570-89-fi/
  23. https://sparklebeeblog.wordpress.com/2020/07/03/monthly-update-jun-2020/
  24. https://pathtolife2.com/2020/07/02/financial-independence-update-june-2020/
  25. https://www.moneyforthemoderngirl.org/i-did-an-antibodies-test-plus-saving-side-income-and-learning/
  26. http://eaglesfeartoperch.blogspot.com/2020/07/investment-review-june-2020.html
  27. https://firelifestyle.co.uk/2020/07/01/financial-update-16-june-2020-going-up-up-and-away/
  28. https://earlyretirementinuk.blogspot.com/2020/07/total-portfolio-37113-1688-debt-0-0.html
  29. http://www.cantswingacat.co.uk/2020/06/30/june-income-report/
  30. https://monevator.com/the-slow-and-steady-passive-portfolio-update-q2-2020/
  31. https://drfire.co.uk/q2-2020-report/
  32. https://igniting-fire.com/2020/06/29/2020-q2-update-long-days-short-weeks/
  33. https://firevlondon.com/2020/06/29/help-wanted/
  34. https://www.firemusings.org/time-to-change-the-car-part-1/
  35. http://thefirestarter.co.uk/dont-faint-its-a-blog-post/
  36. https://thefifox.wordpress.com/2020/07/05/why-everyone-should-start-a-blog/
  37. https://hustleescape.com/anchoring-and-adjustment/
  38. https://gentlemansfamilyfinances.com/2020/07/04/8-great-things-about-working-from-home-during-the-lockdown/
  39. https://playingwithfire.uk/hi-im-the-new-girl-expat-financial-mistakes-learnt-the-hard-way/
  40. https://monevator.com/financial-planning-software-wide-of-goal/
  41. https://youngmoneyblog.co.uk/apprenticeships-are-we-failing-disadvantaged-young-people/
  42. http://bankeronfire.com/hunters-farmers-and-financial-independence
  43. https://indeedably.com/better-days/
  44. http://diyinvestoruk.blogspot.com/2020/07/powercell-portfolio-addition.html
  45. https://www.foxymonkey.com/day-trading/
  46. https://earlyretirementnow.com/2020/07/01/passive-investing-bubble/
  47. https://www.itinvestor.co.uk/2020/06/blue-whale-growth-fund-the-next-big-thing/
  48. https://www.muchmorewithless.co.uk/lockdown-spending-habits/
  49. https://www.finumus.com/blog/school-fees-are-now-very-expensive-or-are-they

2 thoughts on “The Full English Accompaniment – Why a seismic economic shift won’t happen.

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