Education Information

assault on industry, the current account moved into negative territory permanently, as can be seen in the simple graph below.

UK Current Account, % of GDP

Source: World Bank and International Monetary Fund

We became dependent on overseas supply in many crucial areas, such as energy. Historically, the National Union of Mineworkers warned of the dire consequences of running down domestic energy supply and relying on privately owned, overseas providers. Agricultural workers also warned of the impact on prices and the environment of the vast importation of foodstuffs. The other blow to the productive side of the British economy was the unprecedented and wholescale privatisation of services and utilities. Instead of the surpluses made in particular utilities or services, for example the railways, returning to the public purse to reinvest in service improvements, health and safety and price reductions, they were used to line the pockets of their private owners. Public wealth that could be dedicated to increasing productive capacity was wasted to pump up company directors’ bank accounts. And, of course, the blows to working people, who are the most important part of the supply side, were never ending. In addition to downward pressure on wages, there was a sustained assault on the once excellent British system of workplace pensions with defined benefit schemes guaranteeing greater certainty in retirement. The early moves to sell off social housing stock and liberalise the housing market were also a recipe for homelessness and shutting the door to independence for young people joining the labour force.

17