Nothing but froth?
If you haven't seen the story yet, Howard Schulz of Starbucks told a US news network that the UK economy is in a spiral, prompting a stern defence from the man tasked with recrafting the government's recession rhetoric, Business Secretary Lord Mandelson.
Dan Roberts' business blog at the Guardian asks whether our cappucino economy should be pitied:
"...before we resort to the jingoistic defence reflex, it is time to acknowledge that Schultz is merely reflecting the views of many international businessmen. Britain is fast gaining a reputation as the sick man of Europe. We might have all the same problems as everyone else (see here for the chasing pack), but they are proportionally bigger in the UK: Burst housing bubble? check. Bankrupt financial system? check. Collapsed consumer confidence? check. How would you like to sell a venti vanilla latte in this environment?
Americans are quick to distance themselves from a loser. Even the latest issue of Newsweek has a long piece telling us to get over our obsession with the 'special relationship' (summary: what special relationship?). Mandelson would do better to accentuate the positive rather than deny the negative. Anyone for a nice a cup of tea?"
All the more reason to move towards a manufacturing future...