Readers who have been following the economic updates of Roger Martin Fagg will remember that Roger had mentioned that we should expect significant issues with labor supply after the end of lockdown. The main culprit behind the labor supply issues was considered by many as Brexit. However, in his latest economic update, Roger claims that the reason behind the labor supply issues is a bit more complicated.
Roger reveals that western governments were aware of the non-existent or mediocre growth in productivity of major economies since 2018. He added that they realized this even before the covid19 pandemic hit the world in 2020. The mediocre productivity growth of major economies was mainly because of austerity measures, particularly the collapse in the investment in the public sector.
In his latest economic update, Roger states that the public sector is in need of an effective and efficient base from which they will be able to operate with telecoms, sewage disposal, power, water, port facilities, space, and more.
Several countries including India, Germany, and the United States seem to have under-invested when it comes to domestic infrastructure. It is important to note that the countries such as UAE, Sweden, China, and Singapore that invested in domestic infrastructure were able to perform a lot better.
Before the Covid19 pandemic, borrowing money for capital investment was regarded as sound by several experts in industry. That said, borrowing to finance social spending like pensions was considered to be irresponsible.
However, the view changed during the pandemic, and spending whatever was needed to prevent deaths, find a vaccine, and maintain productive capacity during lockdown was considered to be essential. As a result, there has been a considerable increase in the global money supply chain.
Here’s everything discussed in the latest economic update from Roger Martin Fagg : https://jsacs.com/publications/published-articles/