Good Economic News for Everyone

Posted By: Peter Evans
Date Posted: 26/07/2011

It might have escaped the notice of a lot of people that the UK’s financial industry has recently reaped record dividends from their investments made across the world this year. This is wonderful news! It immediately sends out a signal that we have another strong sign that better times are ahead of us and that the UK is staying on track to remove its huge legacy of debt.

Firstly, it has boosted UK Pension Funds – this not only helps those who are saving for a Pension, but it will also result in an increase in the amount of Pensions being paid out too. The increase in income for those in retirement will be welcomed by all of course: for far too long many pensioners have had to sit back and watch their pensions attacked and eroded.

Secondly, it heralds news that UK companies have now been given a further boost to their ambition to invest in creating jobs - which are desperately needed in our manufacturing and engineering sectors to aid our recovery (I referred to this in my previous Diary entry).

The Dividends received will also mean more money going into circulation - so much is obvious. We have all heard that “spending” is the key to ending a recession and this is additional proof that our UK Government has a successful strategy in place – that this contrasts sharply with a considerable number of other countries trying to recover is becoming even more noticeable as each week passes.

We need to be cautious about over-reacting to pressures put on our economy by outside influences - these mainly come from abroad and are totally unavoidable: these temporary blips affect every nation whereas the effects of the Dividends I mention above are permanent. Let’s keep it in mind that turning a set-back into a drama sells newspapers or gives a brief boost to voices of opposition. We will see economic growth figures fluctuate along the way – this is only natural: we merely need to keep our common sense in play.