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Notes -
Scott: Highlights from the comments on British economic decline.
I’m interested particularly as a follow up to my discussion with @FirmWeird. Here we have an economy that struggles, where the citizens recognize it struggles, but the standard indicators look normal. I wanted to see if this would show up in the energy metrics we were discussing, but this data stops too early to say.
I really expect to see its energy per capita tank. Wealth getting swallowed up in housing has to push down energy consumption, at least compared to capital investment. I don’t think the UK has had anything like the shale boom distorting its cost per BTU, either.
So all the graphs and quantitative data show there's no UK economic decline... and the response is that people write articles wondering how the economic decline has managed to hide itself from statistics?
Hear hoofbeats, think horses not zebras. Maybe there's just no economic decline? Hell, if we're trying to be rationalists, the decline's absence from the statistics means that DEFINITIONALLY there is no decline.
As many of the commenters on Scott's site speculate: one gets the feeling that "UK Economic Decline" is something that europhilic economists want to be able to talk about (and blame on Brexit), therefore they assume it exists as an article of faith and spend their time conjuring up epicyclic reasons for how those dastardly Tories managed to hide it from every single graph in the world by gaming the metrics.
It is possible for metrics to hide important factors. For example, there could be an increase in inequality, which means that most people are worse off while a few people are much better off. This seems to be the opposite of what has actually happened, though. One that seems more likely to me is an increase in prices swallowing more income, so people are worse off. Given what I've heard about housing costs, it rings true, although I can't seem to easily find great data. The US could easily be in a similar position, but being wealthier to begin with masks it.
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