Friday, May 1, 2015

UK manufacturing slows; The austerity delusion; Learning from the elderly

1 UK manufacturing slows (BBC) Sterling has fallen sharply against the US dollar after growth in the UK manufacturing sector slowed markedly in April. Financial data company Markit said its monthly Purchasing Managers' Index (PMI) for manufacturing fell to 51.9 in April from 54 in March. 

Although a figure above 50 still indicates expansion, the fall was the biggest since February 2013.
The pound was down more than 2 cents, or 1.4%, to $1.5139. Sterling also fell against the euro to €1.352. Companies said the strength of the pound against the euro was affecting competitiveness in the eurozone. The Markit survey follows the release of official figures that showed the UK's economic growth rate halved to 0.3% in the first quarter of the year.

The survey found that new export orders fell at the fastest rate since January 2013, job creation was "modest", and manufacturers cut prices at their fastest rate in almost six years.


2 The austerity delusion (Paul Krugman in The Guardian) In May 2010, as Britain headed into its last general election, elites all across the western world were gripped by austerity fever, a strange malady that combined extravagant fear with blithe optimism. Every country running significant budget deficits was deemed at imminent risk of becoming another Greece unless it immediately began cutting spending and raising taxes.

But that was five years ago, and the fever has long since broken. Greece is now seen as it should have been seen from the beginning – as a unique case, with few lessons for the rest of us. It is impossible for countries such as the US and the UK, which borrow in their own currencies, to experience Greek-style crises, because they cannot run out of money – they can always print more.

Since the global turn to austerity in 2010, every country that introduced significant austerity has seen its economy suffer, with the depth of the suffering closely related to the harshness of the austerity. Meanwhile, all of the economic research that allegedly supported the austerity push has been discredited. Widely touted statistical results were, it turned out, based on highly dubious assumptions and procedures – plus a few outright mistakes – and evaporated under closer scrutiny.

It is rare, in the history of economic thought, for debates to get resolved this decisively. The austerian ideology that dominated elite discourse five years ago has collapsed, to the point where hardly anyone still believes it. Hardly anyone, that is, except the coalition that still rules Britain – and most of the British media.

Is there some good reason why deficit obsession should still rule in Britain, even as it fades away everywhere else? No. This country is not different. The economics of austerity are the same – and the intellectual case as bankrupt – in Britain as everywhere else.


3 Learning from the elderly (Asha Iyer Kumar in Khaleej Times) It is impossible to foresee what plight might befall us in old age, but my recent encounters with a bevy of wound-down, grey-haired souls exposed a malaise more agonizing than those afflicting their limbs and body. Loneliness and its handmaiden - geriatric depression.

Loneliness at that age of failing faculties does not essentially mean physical isolation. It is entirely possible to be in the midst of a crowd or community and yet feel the wrench of being alone and deserted. A quick deliverance from it is all they eagerly await, for in the words of a veteran that I know, old age is the greatest misfortune that a human being comes to endure. That it is a misery that has to be borne alone emotionally makes it unutterably tough.

Given the engaging nature of modern life, and the quirky aspects of old age that sets difficult demands, spending quality time with the elderly is becoming a hard task for families. Yes, the elderly ponder endlessly and express themselves repeatedly, and they can be tedious, but they are brimming with things to say. They have narratives gleaned from their past to share, experiences that shed light on their times, and events that bring a hazy glint in their eyes every time they recount them. They have a repertoire of life lessons to impart.

The daily news might not be of much personal interest to them, but they feverishly discuss current affairs as if their opinion has some bearing on the rest. It makes them feel connected with life, even if arbitrarily. They need listeners too to their ‘senile prattle’, just as you and I need to our ‘sensible talk’. But then, isn’t it a while since we lost that fine ability to listen and understand voices other than our own?

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