Charles Brown
>>> Doug Henwood <dhenwood at panix.com> 01/26 10:00 AM >>>
Jim heartfield wrote:
>Looking at the news that the British Economy has not gone into
>recession, I found these figures illustrating the historically low
>levels of British investment.
>
>Presumably this absence of industrial development is the reason that the
>Government is currently promoting British pop music and arts.
>
>Private Gross Fixed Capital Formation (Less Dwellings) as a percentage
>of GDP. In Millions, Current Prices
>
> PGCF GDP %
>1989 74,306 511,889 15%
>1990 77,385 554,486 14%
>1991 70,648 582,946 12%
>1992 64,119 606,582 11%
>1993 64,927 637,817 10%
>1994 69,420 676,036 10%
>1995 77,795 712,548 11%
>1996 88,636 754,601 12%
>1997 95,817 801,972 12%
Comparable figures for the U.S., nonresidential fixed investment as percent of GDP:
1929 10.6% 1930s 6.5% 1940s 6.7% 1950s 9.4% 1960s 9.8% 1970s 10.8% 1980s 11.6% 1990s 9.7%
1980 12.6% 1981 13.0% 1982 12.6% 1983 11.4% 1984 12.0% 1985 12.0% 1986 11.2% 1987 10.6% 1988 10.5% 1989 10.4% 1990 10.0% 1991 9.2% 1992 8.9% 1993 9.2% 1994 9.5% 1995 10.0% 1996 10.3% 1997 10.6% 1998 11.0%
Greenspan and the Wall Street touts say these low levels of investment are actually a sign of strength - we're so damned efficient, thanks to our competitive labor markets and wondrous financial markets, that we can thrive on low levels of capital expenditures. And if that doesn't work, there's always Hollywood to export.
Doug