Costero Poderoso
Well-known member
Science shmienceHow dare you insult the dismal science in that way!
Actually, the Conservative-led Governments since 2012 have been doing somersaults with low business taxes in an effort to engender business investment. In fact, business in the macro-sense has taken the surplus profits created by these reductions, out of their businesses in the form of ever higher bonuses, salaries and dividendes, or using them to purchase real estate. Investment has remained sluggish.
i think it started in the UK anyway around the mid 80's under thatcher, particularly banking de-regulation, Blair didnt do anything about it, in fact most of his policies (through Brown) were specifically designed to make it worse (PPP is a case in point, create a short term asset class out of supporting mechanisms to the economy), Bank of england independence created a bunch of other issues largely to do with short termism, and the disconnection of markets from corporate performance largely driven by short term Chaos investing (my own term) completes the circle. Investment in assets is really really easy, and lending for that type of investment is also really easy. Investing in productive enterprises is incredibly hard, because the finance institutions dont want to know.
I think there are many more equitable models for the economy, even more equitable models that have a basis in consumerism, because breaking that is a real problem. but the pain for any change with the economy imbedded as it is in everything the working population does almost all if not all the pain of change will be felt by the working population.