I’m curious and crave answers from things like conspiracy theory’s, to religion (some people even get the two mixed up!). My new topic is economics which most people see it as just a bunch of numbers, stock exchange crashes and a few percentages here and there but I’ve only recently started getting into it and I have so many thoughts on it after only scratching the surface. I’m only 16 so I’ve got quite a way to go but here are some thoughts I have developed.
I don’t think the UK really has a solid industry, London doesn’t really have industry, it’s more of an economic hub. Cities such as Manhattan, Shanghai and London are all ‘money hubs’. Arabs, Russians, Chinese, invest heir money here, wether in football clubs, property or business. They know that they’re not going to lose anything, it’s a safe investment. Instead of keeping it in bank account doing nothing, they at least try and make something from it. For example, they could buy a house for £1M, they could make maybe an extra 500k in a few years or so or still have the 1M, they can’t lose the money. You see when these ‘investors’ are coming to the UK, (buying the £1M homes, etc.) what happens to our ‘upper class’ once all the £1M homes are bought is that they move down, they’re like ‘okay we can afford the £500,000 homes’ but then more investors come and we’re pushed down again, and it’s going to continue and only get worse and then what happens to the poverty stricken people of society right now in 15/20 years? Another example is what’s currently going on with the bids and offers on Grosvenor House in London which is owned by Sahara. People say we’re in a depression, there’s no money, yet Sahara are being offered more than what they paid for the Hotel by hundreds of thousands. How is that possible in the current economic climate when ‘not one has money’. We have no money. There’s no growth in our economy.
The whole situation is like a pie. You only have so much, and once the investors have taken each of their shares, all that’s left is the crumbs, what can you do with crumbs? You can’t grow pie.
I mean why doesn’t the government decide to try some like say ‘okay we’re going to build a new city’. It’s going to generate money. They’ll be jobs in construction, plumbing, and electrician etc. and people with be attracted for business as it’s affordable. The government could say ‘right we’ll offer British people to invest/buy at half the price and outsiders double the price’ it’s going to give us a chance to get on the same level of foreign competition in our own country, or even put people off investing in the first place and as far as the jobs that’s created through developing the city, the workers are set out for maybe 10 years or so. I mean what are they doing right now? Nothing. There’s not a high enough demand for construction work for the surplus of workers this country has. While the city is being developed, there’s going to be less workers available and the difference between the work and the workers begins to decrease, so prices become higher, money is generated, you see where I’m going with this..?
I think it’s an alright model to go on for an idea, so why hasn’t anyone done it? Maybe because instead we have land going to waste on grazing animals, why not import it instead? Probably cheaper anyway. I think our ‘local produce’ standards can be pushed aside while we look at the bigger picture here, it’s our economy I’m talking about, it has to grow. But you see, this is what happens when people mess with the system over prolonged periods of time, it all has to be paid for eventually, and it’s going to burst at some point, maybe in 20/25 years or so. Prices will crash, people will run out of money, businesses will go under and then more foreign investors will come in, buy our homes, company’s and influence our business, and like we so often do, we’ll complain, when really we only have our selfs to blame. I think people have the wrong perception of the UK, 80% of the population here are on credit, where as if you look at a country like India, (where most people perceive it to be a poverty riddled county) only about 20% of their population are on credit, they have real wealth, where is ours? Countries like India and China is where the future lies, they’re the real competitors to the ‘west’. Just watch this space.
But who’s actually keeping this country a float?