Making Money What Politicians Won't Tell You About the Economy
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Feb 2, 2026 Vicky Pryce, economist and former senior civil servant and author of Mismanaged Decline, explains why politicians spin economic stories. She discusses low real incomes, weak business investment, productivity failures and Brexit’s cost. Vicky also tackles energy pricing, regional inequality and what a true industrial strategy should aim to do.
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Household Spending Power Is Stagnant
- Real disposable incomes in the UK have barely grown for 15–20 years and may stay very low under current forecasts.
- Politicians often tout misleading headline growth while household spending power remains weak.
Optimism Plus Politics Distorts Policy
- Politicians combine inherent optimism with re-election motives, which encourages overstated promises and short-term fixes.
- Ideological fads (e.g., monetarism) can produce long-term harms when policy ignores wider economic needs.
Coordination Drives Economic Coherence
- Central coordination within government matters: loss of it leads to departments pulling in different directions and policy chaos.
- Stable leadership and joined-up policy are prerequisites for sustained productivity improvement.
