Tuesday, 9 February 2010

Labour has killed Manufacturing, not the Tories

I'm getting increasingly confused by all the #changewesee tweets talking about how manufacturing is in such better hands when there is a Labour Government in power.

Because I'm not a pillock, I decided to check the facts behind this whole situation. The following graph shows what percentage of GDP manufacturing has made up. My source was the World Bank. The Blue line shows a Tory Government (1979 -1997) and the Red line shows the current Labour Government (1997 - current).

Between 1979 and 1996 Manufacturing's share fell from 26.7% to 21.2% of GDP. That's a fall of -21% (or a CAGR of -1.4% / year). There is clearly some truth that Manufacturing didn't do very well under those 17 years of Tory power.

However, between 1997 and 2005 (my last data point I'm afraid) manufacturing fell from 20.6% to 13.6%. That's a fall of -35% (a CAGR of 5.2%), significantly more than under the Tory Government and in a lot less time (as the CAGR shows).

Whilst the Tories may not be good for manufacturing, Labour are a damn sight worse.

No comments:

Post a Comment