Mark Carney

Mark Carney says he thought we’d be £900 richer by now

The governor of the Bank of England is blaming Brexit, and other things too – but it's the 'Brexit' bit that everyone's talking about.

Mark Carney, governor of the Bank of England (our central bank) said yesterday that UK households were on average £900 worse off than he thought they'd be in May 2016... you know, before we voted to leave the EU.

What it means: When the Bank of England pipes up on what it thinks Brexit is doing to the UK economy, people pounce on their every word – partly because they're important, but also because they admitted they got one of their forecasts wrong after the referendum, and now people are watching even more closely to see whether they'll slip up again.

This time, Carney's said the UK economy is 'growing' a lot slower than they'd thought it would be before Brexit happened, which means we're not producing goods and services as fast as they'd imagined. He says there's about £40 billion of business we could be doing but aren't – which is losing the government about £300 million a week in taxes.

The crucial thing to understand here is that when he says we're 'losing out', he means 'losing out in comparison to where he thought we'd be'. Households may well be better off – just £900 less better off than the Bank predicted.

They think inflation (the value of the pound going down), low wages, and low productivity (not working efficiently enough), and not enough investment may be to blame.

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Reader Comments

  • WhereAreTheVikings

    What a terrible, terrible shame. Western Civilization nurtured capitalism, and now capitalism is destroying it. And these young people seem to welcome the invasion of their homeland. The media and schools have been very efficient in wiping out all traces of blood and soil.

    • prollawalllynotahumanoid

      Capitalism isn’t the problem. It’s corrupt politicians taking bribes and kickbacks from Globalists and the Chinese.

      • WhereAreTheVikings

        Maybe I should have said crony capitalism. Although Italians importing Chinese to make “Italian leather” shoes is not crony capitalism. It is capitalism, pure and simple.

        • prollawalllynotahumanoid

          That would be crony capitalism and globalism combined. They aren’t concerned with the affect their policies have upon their citizens, the health and welfare of their society and culture or their economy. What it isn’t is fair-free trade to further national interests.

          • WhereAreTheVikings

            I’ve always seen them as one and the same, but perhaps they need to be named individually, just to bring home the point.

      • WhereAreTheVikings

        But now that travel is so easy and borders are virtually down through H1bs and the like, theoretically you can’t blame capitalists for the pursuit of cheaper labor, although I do heartily blame them not being more patriotic than that. Perhaps the emerging nationalism will force them to voluntarily do what they should have morally been doing all along, and that is employing business practices that preserve their countries and nationalities. The government should be doing everything it can to encourage that, to the extent that small government should do anything but guard the borders and strictly, drastically, limit immigration.

      • Henry Lam

        It is China with its corrupted mindset affecting the world.

        • prollawalllynotahumanoid

          No it is not. Capitalism is the fairest and least corrupt system of all.

          Socialism and communism is based on authoritarianism, coercion and police intimidation. It has and always will be rife with criminality, bribes and kickbacks.

          Corruption can be anywhere but it is the very basis of socialism and communism.

    • Henry Lam

      The government is too weak. They do not understand the mindset of communists and how they educate their people. Those communist people are only loyal to their country and could be dangerous. The immigration law should only accept those who accepted multiculturalism and taught from a democratic education system. This virus events clearly has shown how stupid to take China as a friend.

      • WhereAreTheVikings

        The government is not too weak. Just weak-minded about some things.

  • Gabi Rodrigues

    For how many days can a country maximum close their borders to foreigners maximum? Like now, with the virus, everyone is using 30 days. Can it be more?