Monday 23 March 2020

They're not listening

So, on Friday it seemed that Johnson and his Nudge Team began to take the virus seriously.

But took a step back from formally closing shops, parks, take aways and so on.

Pubs closed their doors at midnight Friday, and for the weekend the public were warned about social distancing and only go out when needed and if you do, keep your distance. Then, as I blogged yesterday, with the sunny warm weather, most people treated it like a bank holiday and went out to visit the seaside, national parks and so on.

As a rusult, hundreds, maybe thousands of extra people will get sick and die because of these actions.

We saw in the US five students from one university test positive for the isrus upon their return from Spring Break.

From this evening, alll McDonalds and Nandos are to close. Period. I expect more chains to fillow. Social media shaming yesterday meant Waterstones closed their high street stores to customers, but will take orders over the phone and online.

This has been the story all through this so far, the Government lagging behind actual events and businesses closing down to protect their workers or the public. And yet Fleet Street like to make out Johnson is doing a good job. When the message gets so garbled with each passing press conference.

And with each passing day, the end of the transition period gets closer and nothing is in place. 50,000 customs officers are to be sourced, but how can that happen if meetings are cancelled. Who will build their offices, develop the software systems, build their offices? And how will businesses prepare when it is all they can do now to keep going.

If nothing else comes from this, its that the lorry drivers, shelf fillers, fast food workers will be seen to contribute great value to the economy, without them, we resort to fighting over toilet rolls.

Power to the people....

Our economic system was already broken. The foundation of it, the paying of interest for savings and the charging of a slightly larger rate for borrowers has been the foundation of the economy for centuries. Pay 6% interest to savers, 7% to borrowers and banks pocket the difference. But interest rates have been below 1% since 2008, they had climbed to 0.75% in the last 18 months, but in another emergency measure, the BoE cut them to 0.1%. Everyone will borrow, not clear from where and who will pay.

In effect, our economy has been nationalised, normal economic rules and science no longer apply. These are extraordinary time for sure, but how will we ever get back to normal as we will be addicted to the state paying 80% of our wages, lots of leisure time to spend it. Interest rates never got close to normal after 2008, how will things ever get back to normal now when few are creating value?

Not a critism, just asking.

No comments: