As global inflation gathers pace the UK economy continues to struggle and will continue to do so for many years to come. Not that it’s any different in the European Union (EU), which has some of the highest inflation rates in the developed world.
Take Estonia and Lithuania, for instance, where inflation is over 22% - nearly twice that of the UK. Even in Germany, which is often held up as an example of manufacturing and fiscal excellence, inflation is in double digits. In Belgium, it has reached 13.1%.
Many people blame a botched Brexit which while being partly responsible for a few of our problems is not to blame for most. We have the global pandemic and war in Ukraine to thank for that. Those two important issues, plus a total mismanagement of the crisis by the government at the time. Not that I think any other political party would have done better. Panic had set in and when that comes in the door common sense goes out the window.
Most world governments mismanaged the pandemic by locking people down too soon and too often, and printing far too much money. It is reported the US printed 20% of all dollars in 2020. It is not possible to overload the monetary system with this volume of greenbacks without upsetting global financial order. By comparison, the UK printed almost a trillion pounds in 2021 alone, according to some reports. That is astronomical and stokes the flames of inflation to the point where putting the fire out becomes virtually impossible.
It may take until the mid 2030s before we see the embers stop burning completely. In the meantime, a recession - and even a likely depression - beckons.
So what can people do to protect themselves from the ravages of what may prove to be a savage retraction? Number one on my list would be to avoid working from home. If your job is based in central Bristol but can be done from Nailsea, Thornbury or Bath, on the telephone and internet, then it can be done from Thailand, the Philippines or India just as well and where employment costs are far less.
With companies and public bodies looking to reduce costs, making you redundant and employing overseas labour instead will become an obvious option. No need for immigration thanks to the internet. I would be insisting productivity increases by attending a collective place of work if I were employed in a job that might be affected.
Bristol is in quite a good position to weather any coming financial storm but it will definitely be affected. I don’t think the city’s public transport network is anywhere near good enough to cope with the potential overload, due partly perhaps to people handing their cars back to leasing companies and trying to use the bus or train in order to save money. Neither service is comprehensive enough to deliver effectively. Cycling is ok if you don’t mind getting wet and cold, and don’t have to travel too far! Private cars, vans, and other commercial vehicles, whether petrol, diesel or electric, will be around for many years yet.
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