Do we have an economic recovery, or continuing slump? It depends who you are.
The Financial Times (4 September) reports: "The lopsided economic recovery is... increasing iunequality inside [countries]. It seems like a happy combination for luxury goods companies – [their] shares have more than doubled since investors first scented recovery in March last year.
Persistently high unemployment and public sector retrenchment – issues that affect ordinary people’s spending decisions – hardly matter right now to the typical buyers of luxury goods. What does matter is that corporate profits have surged back and with them business travel and bonuses for top executives".
Keep that in mind when the government tells you that cuts in services and benefits which the worst-off depend on are "necessary".