5 things to fix the British economy
- Thread starter edwardcrompton
- Start date
Rita_Poon
Player Valuation: £100m
jaspercabbage
Player Valuation: £6m
A quiet day in the troll factory then 
Hinchcliffe's Corner
Player Valuation: £50m
Pressing midfielder? I'd sign him in a heartbeat.
edwardcrompton
Player Valuation: £8m
And what....formby boy?
Tony Hibbert's Wife
Player Valuation: £500k
'Fixing' the economy is largely outside the power of Government.
Economic growth is driven by the creation of money. Notwithstanding the best efforts of Government(s) to put liquidity into the economy through quantitative easing after the 2008 crash the supply of money into the economy is still too low (in fact the BOE has recently put into action quantitative tightening to remove that money from the economy which is partly why the BOE have retained interest rates at such a high level).
Important to understand: 80% of money created in the UK economy is created by banks, not the government. See here:
How is money created?
Most of the money in the economy is created by banks when they provide loans.
www.bankofengland.co.uk
Now, if 80% of money is created by banks issuing loans, how are those loans repaid with interest? Yeup, more loans from banks (otherwise there wouldn't be enough money in the economy for the repayment of all loans and interest). So we understand that the economy, in spite of its extreme complexity is, ultimately, a Ponzi scheme.
Let's deal with two fundamental points, one of which is quite uncomfortable for most people to acknowledge but, nonetheless, remains true:
1. You can only generate more tax revenue if the economy is growing as people and companies do more activities that can be taxed (employment is higher, for e.g.); and
2. To maximise taxation returns the highest burden of tax must be placed on middle income people. Whilst it's certainly equitable to heavily tax the rich and asset rich, the fact is that taxing those assets is complicated and difficult to enforce (leaving aside the fact that the rich have a far greater ability to both avoid tax or simply just leave). Further, point 1 and 2 are related here as the rich are very much more likely to leverage their assets for financial gain than the average person.
So, if you wanted a 5 point plan it would look something like:
1. Increase taxation on middle income earners;
2. Reduce taxation on investment related activities for the rich (reinstatement of CGT tapering would be a decent example of how that might work);
3. Reduce the regulatory burdens and capital requirements on bank lending;
4. Invest in large scale infrastructure to attract capital speculation (doesn't matter where and, largely, what)
5. Take steps to reduce the regulatory burden on capital flow (rejoining the EU would work to a point for e.g.)
If you wanted to go even further, large scale removal of employment rights to drive down wages of the lowest paid, removal of barriers to housebuilding (houses = mortgages = bank money creation = growth), bring back control of interest rate setting to the treasury (reduces the UK capital holding interest costs with banks that would save £4bn or so a year), privatise the NHS (probably wouldn't reduce the government cost for health provision but... the privatisation would put £100bn on GDV.
Before everyone kicks off at me for being a Tory/Farage/Andre Tate fan, can I just point out:
1. I'm not saying this is a good idea;
2. I'm a Marxist; and
3. I've pointed out above that the whole capitalist economy is a Ponzi scheme; and
4. I'm just responding to the brief: '5 point plan to fix the economy'. Obviously zero detail but on paper this would work.
STRAIGHT OUTTA CROMPTON
MY LIL HOME CALLED EDDIE
NIGHT SHIFT BETTER BE READY
TESTING JAWS POST BY POST
HE THE POSTER I LOVE MOST.
MY LIL HOME CALLED EDDIE
NIGHT SHIFT BETTER BE READY
TESTING JAWS POST BY POST
HE THE POSTER I LOVE MOST.
edwardcrompton
Player Valuation: £8m
Great copy and post,,,,I've laid down 5 visions to make the UK great again....'Fixing' the economy is largely outside the power of Government.
Economic growth is driven by the creation of money. Notwithstanding the best efforts of Government(s) to put liquidity into the economy through quantitative easing after the 2008 crash the supply of money into the economy is still too low (in fact the BOE has recently put into action quantitative tightening to remove that money from the economy which is partly why the BOE have retained interest rates at such a high level).
Important to understand: 80% of money created in the UK economy is created by banks, not the government. See here:
How is money created?
Most of the money in the economy is created by banks when they provide loans.
Now, if 80% of money is created by banks issuing loans, how are those loans repaid with interest? Yeup, more loans from banks (otherwise there wouldn't be enough money in the economy for the repayment of all loans and interest). So we understand that the economy, in spite of its extreme complexity is, ultimately, a Ponzi scheme.
Let's deal with two fundamental points, one of which is quite uncomfortable for most people to acknowledge but, nonetheless, remains true:
1. You can only generate more tax revenue if the economy is growing as people and companies do more activities that can be taxed (employment is higher, for e.g.); and
2. To maximise taxation returns the highest burden of tax must be placed on middle income people. Whilst it's certainly equitable to heavily tax the rich and asset rich, the fact is that taxing those assets is complicated and difficult to enforce (leaving aside the fact that the rich have a far greater ability to both avoid tax or simply just leave). Further, point 1 and 2 are related here as the rich are very much more likely to leverage their assets for financial gain than the average person.
So, if you wanted a 5 point plan it would look something like:
1. Increase taxation on middle income earners;
2. Reduce taxation on investment related activities for the rich (reinstatement of CGT tapering would be a decent example of how that might work);
3. Reduce the regulatory burdens and capital requirements on bank lending;
4. Invest in large scale infrastructure to attract capital speculation (doesn't matter where and, largely, what)
5. Take steps to reduce the regulatory burden on capital flow (rejoining the EU would work to a point for e.g.)
If you wanted to go even further, large scale removal of employment rights to drive down wages of the lowest paid, removal of barriers to housebuilding (houses = mortgages = bank money creation = growth), bring back control of interest rate setting to the treasury (reduces the UK capital holding interest costs with banks that would save £4bn or so a year), privatise the NHS (probably wouldn't reduce the government cost for health provision but... the privatisation would put £100bn on GDV.
Before everyone kicks off at me for being a Tory/Farage/Andre Tate fan, can I just point out:
1. I'm not saying this is a good idea;
2. I'm a Marxist; and
3. I've pointed out above that the whole capitalist economy is a Ponzi scheme; and
4. I'm just responding to the brief: '5 point plan to fix the economy'. Obviously zero detail but on paper this would work.
I should be the Prime Minister
edwardcrompton
Player Valuation: £8m
@grok please reply I'm too drunk.'Fixing' the economy is largely outside the power of Government.
Economic growth is driven by the creation of money. Notwithstanding the best efforts of Government(s) to put liquidity into the economy through quantitative easing after the 2008 crash the supply of money into the economy is still too low (in fact the BOE has recently put into action quantitative tightening to remove that money from the economy which is partly why the BOE have retained interest rates at such a high level).
Important to understand: 80% of money created in the UK economy is created by banks, not the government. See here:
How is money created?
Most of the money in the economy is created by banks when they provide loans.
Now, if 80% of money is created by banks issuing loans, how are those loans repaid with interest? Yeup, more loans from banks (otherwise there wouldn't be enough money in the economy for the repayment of all loans and interest). So we understand that the economy, in spite of its extreme complexity is, ultimately, a Ponzi scheme.
Let's deal with two fundamental points, one of which is quite uncomfortable for most people to acknowledge but, nonetheless, remains true:
1. You can only generate more tax revenue if the economy is growing as people and companies do more activities that can be taxed (employment is higher, for e.g.); and
2. To maximise taxation returns the highest burden of tax must be placed on middle income people. Whilst it's certainly equitable to heavily tax the rich and asset rich, the fact is that taxing those assets is complicated and difficult to enforce (leaving aside the fact that the rich have a far greater ability to both avoid tax or simply just leave). Further, point 1 and 2 are related here as the rich are very much more likely to leverage their assets for financial gain than the average person.
So, if you wanted a 5 point plan it would look something like:
1. Increase taxation on middle income earners;
2. Reduce taxation on investment related activities for the rich (reinstatement of CGT tapering would be a decent example of how that might work);
3. Reduce the regulatory burdens and capital requirements on bank lending;
4. Invest in large scale infrastructure to attract capital speculation (doesn't matter where and, largely, what)
5. Take steps to reduce the regulatory burden on capital flow (rejoining the EU would work to a point for e.g.)
If you wanted to go even further, large scale removal of employment rights to drive down wages of the lowest paid, removal of barriers to housebuilding (houses = mortgages = bank money creation = growth), bring back control of interest rate setting to the treasury (reduces the UK capital holding interest costs with banks that would save £4bn or so a year), privatise the NHS (probably wouldn't reduce the government cost for health provision but... the privatisation would put £100bn on GDV.
Before everyone kicks off at me for being a Tory/Farage/Andre Tate fan, can I just point out:
1. I'm not saying this is a good idea;
2. I'm a Marxist; and
3. I've pointed out above that the whole capitalist economy is a Ponzi scheme; and
4. I'm just responding to the brief: '5 point plan to fix the economy'. Obviously zero detail but on paper this would work.
edwardcrompton
Player Valuation: £8m
Gwladys St. Glory
Grumpelicious middle-aged git
Will you please stop fat-fingering your phone Eduardo or I'm goin to contract @tommye to cut them off,,,
@peteblurgh
Bishop Thumpety-Thump
Player Valuation: £20m
Misused ellipses. Imagine not being able to punctuate but expecting to be taken seriously.
Actually imagine reading the Daily Mail and expecting to be taken seriously.
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