Poems Images and Books about Economic Decline

Book Reviews
What We Have Lost: The Dismantling of Great Britain 
by James Hamilton-Paterson.
Head of Zeus, 360 pp., £25, October 2018, 978 1 78497 235 6
The Rise and Fall of the British Nation: A 20th-Century History 
by David Edgerton.
Allen Lane, 681 pp., £30, June 2018, 978 1 84614 775 3

I have always been interested in decline and business failure, and recovery.

Here are the main points in these two books:

Leadership:

Edgerton argues that most decolonized theories are garbage, often used as a critique for the left and a refuge for extraordinary and ineffective measures.

Hamilton-Paterson blamed policy errors and collective inadequacy for British development issues in the 20th century. 

Decline and Rebellions:

Britain in the 1970s was still alive and changing.
Significant rebellions were breaking the surface.  The absolute deterioration is when change dries up.  Both books agree that this was a window of opportunity.

Manufacturing Decline:
British industry needed to compete with catch-up countries.
Unemployment was rising, and they revived nationalization.
Mergers proved to be disastrous for competitiveness and productivity.

Blame on British Management:
Old unreformed boardrooms and moneymen replacing experienced directors.
Amateurism and short-term focus on stock-market gains.
Need for more skilled shop-floor experience in management.

Historiography Curiosities:
C. P. Snow's 'Two Cultures' lecture on British aversion to scientific research is still discussed after 60 years.
The lecture undermines its own argument.
High scientific achievements played a critical role in Britain's enterprises.

Technocracy and Politics:
Technocracy remained the mode of civil and military development.
Blaming 'socialist fantasies' in the declinist game.
Harold Wilson's reputation was a far-sighted Labour prime minister that sought to reform Britain.

Management incompetence in larger businesses and finance houses:
The banking crisis revealed a parade of absurdly expensive bosses who did not understand their underlings' work.
Many larger businesses and finance houses still need to exhibit managerial arrogance and digital illiteracy.

Britain's post-war self-sufficiency and warfare state:
After World War II, Britain aimed to be economically self-sufficient by creating a 'warfare state.'
The enormous expense of the warfare state led to years of rationing and austerity, depriving the welfare state of resources.

Militarization and masculinization in the 1950s:
In the 1950s, Britain experienced a profound militarization and masculinization of the public sphere.
Defence spending reached 10% of GDP, surpassing peacetime levels in 1913 and 1938 and impacting government and universities.

Britain's nuclear deterrent and top-table status:
Britain desired an independent nuclear deterrent, but since 1963, it has been under American control.
The belief that possessing nuclear weapons guarantees top-table status remains a humiliating pretence.

Lack of consensus on the welfare state:
There was no lasting consensus between political parties regarding the welfare state.
A consensus did exist for the warfare state, which kept its secrets and paid its vast bills.

The enduring arms trade and lack of economic seriousness:
The arms industry preserves British engineering, research, and technical expertise.
The lack of a profound and comprehensive economic plan has been a persistent issue in Britain's history as an industrial nation.

The replenishment and loss of Great Britain:
Foreign conglomerates have lost or taken over many British firms and brands.
The replenishment of Great Britain is a cause of grief and loss but not a sentiment shared by all.

The fatal management revolution and Destabilization of Television South West:
The fatal management revolution of the 1980s destabilized Television South West, leading to the loss of its franchise in 1991.
The revolution involved installing inexperienced managers, nonsensical exercises, and divisions within the company.

Flamboyante et foisonnante, l’exposition Monet au Grimaldi Forum de Monaco se place sous le signe de la lumière pour fêter le 140e anniversaire du premier séjour du peintre sur la Riviera.

Honestly, I enjoy viewing these articles in terms of the following article by William Davies.

Vol. 44 No. 15 · 4 August 2022 edition of the London Review of Books features an article titled "The Seductions of Declinism" by William Davies. 

Economic Challenges: The British economy faced several challenges leading up to the article's publication. These challenges included high inflation, which reached a forty-year high of 9.1%, and the Bank of England's fifth interest rate rise since December, bringing it to 1.25%. I expected inflation in the UK to persist due to factors such as the war in Ukraine and supply-chain bottlenecks caused by COVID-19 lockdowns.

Impact of Brexit: Data from the European Commission confirmed concerns about the impact of Brexit on trade. Exports from the UK to the EU, its largest trading partner, declined by 14% in 2021 compared to 2020 and 25% compared to 2019. The OECD predicted Britain would enter a recession the following year and had one of the worst economic outlooks among G20 nations.

Housing Market: The article highlights surreal news from the housing market, where house prices experienced a significant increase. The Halifax reported June had seen the fastest monthly rise in house prices since 2007, and the twelve months prior had the largest annual rise since 2004. This news was seen as positive by some due to its potential impact on homeowners, but it raised concerns about affordability for those in rented homes.

Cost of Living Crisis: The "cost of living" crisis, characterized by rising energy and food costs, primarily affects people in rented homes who rely solely on wages and benefits. Half of the population has already reduced food shopping and public services face budget cuts. The winter outlook is grim, with a planned increase in energy prices coinciding with cold weather and the ongoing threat of COVID-19 exacerbating strain on the NHS.

Economic Malaise: The article discusses a longer-term view of Britain's economic malaise, as presented in the Resolution Foundation's report titled "Stagnation Nation." The report identifies two major trends: low productivity growth since the 2008 financial crisis and increased income and wealth inequality over the past four decades. Wages have stagnated since 2007, and wealth disparity has contributed to a decline in prosperity for many.

Rentierism and Neo-Feudalism: The article references the work of political economists who argue that contemporary capitalism in Britain has shifted away from investment in productive assets towards speculation on unproductive assets like housing. This trend, labeled "rentierism" and even "neo-feudalism," has been exacerbated since the 2008 financial crisis. Low productivity and wealth management strategies focused on preserving existing assets contribute to economic stagnation.

Authoritarian Populism: The Conservative Party's response to the economic challenges is compared to the tactics of "authoritarian populism" identified by Stuart Hall in the late 1970s. This approach combines economic theory with a moral and cultural diagnosis of national decline. The article highlights how cultural issues, the press, and conflicts with universities are used as part of this political strategy.

Declinism and Nostalgia: The article argues against the seduction of "declinism," the narrative that everything has been getting worse for decades, as it works in tandem with nationalist "revivalism" on the right. The invocation of the 1970s in the current political discourse seeks to blame unions and progressive ideas for economic disorder. It promotes the need for a strong, Thatcherite figure to restore order.

Intellectual Vacuum and Serious Policy: The article criticizes the intellectual vacuum within the current Conservative Party and its reliance on slogans and insults rather than serious policy discussions. Candidates for the Tory leadership demonstrate loyalty to their newspaper allies, perpetuating cultural conflicts and downplaying economic challenges. The author argues that addressing Britain's economic malaise and engaging in serious policymaking is crucial.

Financial Deregulation and Risk-Taking: The article highlights the intentions of Britain's elites to pursue another financial free-for-all. The Bank of England recently abolished regulations imposing affordability criteria on mortgage sales, and a new Financial Services Bill aims to challenge the Bank's regulatory power. These measures seek to promote risk-taking and financial deregulation, benefiting the wealthy.

Temptations of Declinism and Urgent Issues: The article acknowledges the temptations of "declinism" but warns against its negative consequences. It emphasizes the need for serious policymaking to address economic stagnation and pressing issues. Balancing redistribution and economic growth is challenging, and urgent attention is required due to the added urgency of climate change.

[1] William Davies · The Seductions of Declinism: Stagnation Nation · LRB 4 August 2022. Retrieved from https://www.lrb.co.uk/the-paper/v44/n15/william-davies/the-seductions-of-declinism

Salvador Dalí, Woman with a Head of Roses (detail), 1935, Oil on wood, 35 x 27 cm Kunsthaus Zürich © Fundació Gala-Salvador Dalí, Figueres 2022/Adagp, Paris 2022

Poem of the day

The Sluggard Isaac Watts ’Tis the voice of the Sluggard: I heard him complain, “You have wak’d me too soon, I must slumber again;” As the door on its hinges, so he on his bed, Turns his sides, and his shoulders, and his heavy head. “A little more sleep, a little more slumber,” Thus he wastes half his days and his hours without number; And when he gets up he sits folding his hands, Or walks about saunt’ring, or trifling he stands. I pass’d by his garden, and saw the wild brier, The thorn and the thistle, grow broader and higher. The clothes that hang on him are turning to rags: And his money still wastes, till he starves or he begs. I made him a visit still hoping to find He had took better care for improving his mind: He told me his dreams, talk’d of eating and drinking; But he scarce reads his Bible, and never loves thinking. Said I then to my heart, “Here’s lesson for me; That man’s but a picture of what I might be: But thanks to my friends for their care in my breeding, Who taught me betimes to love working and reading.