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The FIRE goes out

Countries like the UK have come to be known as FIRE economies, because they consist largely of companies involved in Finance, Insurance and Real Estate. These markets were seen as far more sexy and productive than boring old manufacturing or farming. Which, according to a certain viewpoint, is true: there’s a limit to how much stuff people really need, so once your manufacturing and food distribution processes are suitably efficient it seems wasteful to pour more resources – and people – into making and growing stuff when you can make far more money working out how to flog what you and other countries make at higher prices to more people. However, if your manufacturing and agricultural base shrinks too far, you end up being dependent on imports for the necessities in life. This is a problem. To put it simply, you can probably do without home contents insurance but...

posted on: Sep 18, 2008 | author: Alex