What the Chancellor omitted to say

It’s budget day in the UK and George Osborne did his best to put a positive spin on the mess we’re in. What he didn’t say (because he would like to be re-elected) is that we are all destined to be worse off. It’s inevitable. Equilibrium is heading our way …

The law of gravity is as inexorable as the law of economics. Economist John Maynard Keynes’ Theory of Equilibrium takes a physical truth – that natural forces ensure all things in the universe tend towards equilibrium – and applies it to the economy.

Supply and demand for example. If demand outweighs supply, prices might rise until demands falls and equilibrium is achieved. If there is too much of a product or service, prices fall until demand takes up the slack.

The implications for the world economy are clear. There is a finite amount of wealth and resources on the planet. For now, the established economies of the West remain richer than the emerging economies as a whole. But the distribution of wealth has been slowly changing for years. Our standards of living are in decline, while those in China, India et al (who have long under-cut the prices of our own goods and services) are on the rise.

No government, no chancellor, no budget can stem the tide of the inevitable. Equilibrium will prevail in generations to come.

But before you throw in the towel, there is of course a silver lining.
There will be individual winners and losers on both sides, just as there are now. A whole new market of wealthy middle class consumers is coming online by the day. Dynamic, innovative British companies have perhaps more chance to grow and be successful than at any time in our history. It’s an amazing opportunity if you’re willing to grasp it.

Marketing, and in particular, digital marketing and social media are likely to be increasingly important in promoting and selling your goods and services for the foreseeable future. Riding the crest of the social media wave, you stand a far greater chance of success than those who adhere only to the traditional (and declining forms) of marketing.

Digicrab is at the cutting edge and has the resources to help you optimise your marketing spend. Whatever your business, whatever your plans, get in touch and let us help tip the balance in your favour.

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