The prime minister's adviser, Lord Young, a cabinet minister under the late Baroness Thatcher, who is the only aide with his own office in Downing Street wrote: "The rise in the number of businesses in recent years shows that a recession can be an excellent time to start a business. Competitors who fall by the wayside enable well-run firms to expand and increase market share. Factors of production such as premises and labour can be cheaper and higher quality, meaning that return on investment can be greater."
A Downing Street spokesman said Young was merely stating a "factual point and nothing else".
Indeed, he was accurately pointing out the cold reality of capitalist economics. Investment and expansion takes place when there is a return to profitability; lower labour costs and an increased market share due to the demise of rivals’ by going bankrupt, contribute to the recovery.
Francis O'Grady, the general secretary of the TUC, said: "The 2.5 million people still out of work will wonder what planet Lord Young is living on when he claims recessions bring economic gains." - A capitalist planet, Brother O’Grady.
Rather than shooting the messenger he should be challenging the system.
UK employees' average hourly earnings have fallen by 8.5% since 2009 in real terms, adjusting for inflation, according to the Office for National Statistics .
A Downing Street spokesman said Young was merely stating a "factual point and nothing else".
Indeed, he was accurately pointing out the cold reality of capitalist economics. Investment and expansion takes place when there is a return to profitability; lower labour costs and an increased market share due to the demise of rivals’ by going bankrupt, contribute to the recovery.
Francis O'Grady, the general secretary of the TUC, said: "The 2.5 million people still out of work will wonder what planet Lord Young is living on when he claims recessions bring economic gains." - A capitalist planet, Brother O’Grady.
Rather than shooting the messenger he should be challenging the system.
UK employees' average hourly earnings have fallen by 8.5% since 2009 in real terms, adjusting for inflation, according to the Office for National Statistics .
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