The economic outlook in Europe is no better than the bleak picture here, and with the possible collapse of the Greek government, and the Euro, it might actually turn a whole lot worse. Even though Great Britain isn’t in the Euro-zone, and is avoiding the drama and instability of its neighbors, the UK is still mired in a massive economic slump powered by high deficits, depressed domestic production and the general malaise hanging over most of Europe.
Interestingly enough, British Prime Minister David Cameron’s plan to try and lift his country’s economy out of the ditch should have a familiar ring to it on this side of the pond. Cameron is investing heavily in infrastructure programs, giving the go-ahead to build two new power plants while also injecting £950 million in to smaller projects. The money is estimated to create more than 200,000 jobs, and, Cameron said, jump start private investment in other projects.
“Our focus is on updating our infrastructure. In terms of future productivity, this infrastructure deficit is as serious as our budget deficit. Getting construction projects off the ground is critical.”
This plan – if not in detail, certainly in principle – is strikingly familiar to President Barack Obama’s job plan, which also relies heavily on public construction and infrastructure to create jobs. As we mentioned before, the president’s jobs plan could have a lot in it for the field service industry.
Jobs Expected Here?
So, if the UK is going all-in on construction, will the U.S. be far behind? The immediate answer is no. With the presidential election a year out, governance unfortunately grinds to a halt as getting elected takes a front seat to small things like actually putting people to work. Additionally, it’s hard to imagine Republicans giving the green light to such a large expenditure (Great Britain’s plan equals more than $1.5 billion U.S. dollars) in any political climate, but that doesn’t mean there’s no room for compromise. It just won’t happen in the next 12 months.
Britain’s investment in construction is encouraging, however, because with the conservative Cameron’s backing, it could lend a bit of legitimacy to the idea in certain conservative circles over here.
For now, though, we’ll just have to sit and wait.