Although the Deputy Prime Minister urges businesses to do their part to aid the struggling economy by reaching out the community, it appears as though the plea has fallen on deaf ears. Businesses in the UK have realised profits on a par from days before the recession hit in 2008, but millions in the UK are still unemployed.
His words urged UK companies to expand their horizons, invest in diverse places and to bring young people into the workforce as a means to improving the tenuous economy in the UK and beyond. Instead, households on the verge of bankruptcy are growing by the day and businesses are socking their profits away in safe havens such as the Swiss Franc and gold bullion.
It is reported by the Office for National Statistics that profits have recovered back to the levels of the first few months in 2008 before the global meltdown hit. Business recovery showed cash balances were actually twice that of the pre-recession days coming in at around £65bn.
Even though Clegg pleaded with companies to expand, they have gone in the opposite direction. Figures show that corporate investments actually fell by 3.2% in the first three months of 2011 and intentions to invest remain week in the corporate sector.
This is just adding to the public’s lack of confidence as riots indicate that consumers are just frustrated with the lack of concern. Millions are without work and unable to support their families whilst UK businesses are investing money in safe havens, making a tidy profit instead of profiting the communities in the UK where they are based.
To sum up the gravity of the problem, UK investments are at the lowest proportion since 1955. This figure based on the GDP minus business inventories. Clegg’s pleas to invest in building the economy may be a valid solution, but one that is certainly going unheeded.