Willy Hutton really is an ignorant buffoon, isn\’t he?

The problem for the right in Britain and its big brother in the US is that, after 30 years of the conservative revolution, it is now wedded to the premodern view that risks in a market economy and society should be run as individualistically as possible, whether the risk is carried by a company launching an innovative technology or a citizen contemplating old age. The rationale is that self-help in a Darwinian struggle for survival produces moral beings and vigorous economies. The policy conclusion is so-called supply-side reform – lowering the tax \”burden\” and stripping out labour market regulation that so delights the Tory right. Side-effects – the spoils falling to those who already have; denser concentrations of corporate power and growing inequality – are shrugged off. They are the unfortunate price that has to be paid.

Sigh, that\’s not what supply side reform means.

What it does mean is reform of the supply side of the economy. Anything and everything from employment legislation through to privatisation of a telecoms company, allowing competition in airlines and even something like a citizens\’ basic income would be a supply side reform.

And far from the side effects being the spoils falling to those 2ho already have the point and aim is to wipe out those positions where rent seeking and monopolistic behaviours exist. He\’s got the whole idea entirely bass ackwards: not unusually for Our Willy of course.

Setting the wealth-creators free is a charter for plutocracy, economic fragility and social breakdown.

Don\’t be such an ignorant tosspot. Supply side reform is all about eradicating the barriers to competition that allow plutocracy.

We want medium-sized firms to be able to build more quickly their capital and their balance sheets – to create the equivalent in Britain of the German Mittelstand, the amazing cluster of largely family-owned companies that drive Germany\’s innovation and export success.

Facepalm.

Why is it that no one understand the historical accident of this ownership structure? The entire economy was wiped out in 1945. The young men who recreated it are now pretty much gone, even their children who inherited the companies are in their dotage. The preponderance of family owned companies is because almost all of the companies have been created in the past 70 years. If every extant company in the UK had been wiped out in 1945 we\’d have a similar ownership structure ourselves.

And do note what the biggest problem that Mittelstand faces is: how in buggery do you keep that family ownership thing going when you\’re talking about 15 grandchildren and 35 great grandchildren?

We propose a dramatic and fast scaling-up of existing support along with new measures, such as banks being able to get Treasury indemnities for new lending.

Sob. Government backing for mortgages was such a great idea, wasn\’t it? And government backing for industrial loans is going to be so much better? As it is in, say, China? Where politics allocates the State banks\’ money?

Farcical nonsense.

6 comments on “Willy Hutton really is an ignorant buffoon, isn\’t he?

  1. And do note what the biggest problem that Mittelstand faces is: how in buggery do you keep that family ownership thing going when you’re talking about 15 grandchildren and 35 great grandchildren?

    The Germans wish.

    In reality their problem is how do you keep a family business going when you’re talking about one grandchild and he is an interior decorator uninterested in leaving downtown Berlin where he lives with his partner Ahmad and their two poodles to run the family business.

  2. When will the “let’s all copy Germany” crowd realise that just because something works over there, that doesn’t mean it will work over here? And I still remember when we were being exhorted to copy Japan, copy the Asian tigers…. remember what happened to them not long afterwards? Copying the successes of others does not ensure our own success – especially as those successes themselves usually contain the seeds of subsequent failure: that’s how the “business cycle” works. We need to concentrate on what we, the British, do best and enjoy what is unique about the way WE do business – not ape other cultures.

  3. I think the copy Germany school talks a lot of nonsense too. I’m not sure I agree, however, with ‘The entire economy was wiped out in 1945′ – I think a surprising amount of it was left standing, including much of the big companies’ industrial base.

  4. I read also somewhere else on an british website that England had earlier vocational training etc.
    as Germany but that it lost significance.
    This is not true if you read this here please.

    http://en.wikipedia.org/wiki/Guild

    During the Gupta period in India (AD 300M–600), craftmen’s associations, which may have had archaic antecedents, were known as shreni. Greek organizations in Ptolemaic Egypt were called koinon, starting from their 3rd century BC origins of Roman collegia, spread with the extension of the Empire. The Chinese hanghui probably existed already during the Han Dynasty (206 BC – AD 220):, but certainly they were present in the Sui Dynasty (589 – 618 AD). Roman craftsman’s organizations continued to develop in Italy of the Middle Ages under the name ars. In Germany they are first mentioned in the 10th century. The German name is Zunft (plural Zünfte) for guilds of craftsman and Gilde (plural Gilden) for guilds of merchants. Métiers in France and craft gilds in England emerged in the 12th century.

    beside that Germany had industrialisation later as England. And also cultural Germany is much more prudent with Money.
    Speculation like selling harvest before it was harvested was forbidden 60-70y after this already happened in London.

    Probably there were already in WW1 more family companys in GER as in England.
    Hitler wanted to do more for family companys to help them against big corporations.
    And this was because there were already MANY family companys!

    Just ask yourself why it needed half the world to stop Germany. Instead a few big corporations you had a few big and a ton midsize.
    And yes still today.

    The main difference between communism and fascism is “private ownership”
    This is why it worked JUST economical better as communism.

    Yes many of this companys are refounded 1950,1955 etc.
    But a reason for this was also occupation.
    People did hide documents,building plans etc.
    And refounded AFTER it was safe. because why would you like to run a company just for the occupying forces.
    There it is AGAIN “private ownership” important for the economy 😉

    Todays Mittelstand or Family companys are also partly managed by non family members and family members sit in the supervisory boards etc. Because the grand children, dont worry to much about that mostly people with a lot money and those with NO money have many kids.
    But this is probably not so much different in the UK.

    Because:
    If every extant company in the UK had been wiped out in 1945 we’d have a similar ownership structure ourselves.

    I dont think so.


    Because today, the biggest problem for UK todo something like that is “skilled people”
    There are a ton people with technical vocational training in Germany, and much more engineers etc. but not so in the UK.

    Its a bit the same problem now with the football youth development.
    1/10 of UEFA pro coaches.
    first come the coaches, after that they need experience, and after that you get more/better players out.

    So in this comparison with the Midsize companys it would have to be a loooong term plan. And also politicians think mostly just until the next election.
    But the thing with Germany is, it had never todo something with politicians apprenticeships,family business, is here much more also a cultural thing.

  5. Because:
    And I still remember when we were being exhorted to copy Japan, copy the Asian tigers…. remember what happened to them not long afterwards?

    by the way Japan copied Germany a bit.
    in the late 60s there were for example engineers camouflaged as normal workers in Germany to learn something.
    Did work out quite okay for Japan.
    I’m atleast relative sure that the banking crisis is not something they learned from Germany.
    Japan has big problems. But japanese have a HUGE number of patents every year. And Japan has still many many FANTASTIC companys.

    Germany is big in export since 100 and more years, maybe with a few breaks between ,)
    And ofcourse who knows what will happen in the next 20,30years.
    China still doesnt play fair. Chinese companys can invest in USA, or EU but companys from the EU cant in china atleast often just with chinese partners.

    But maybe here comes one good news!
    China has the last years invested HUGE in education, engineers etc. etc.

    And the numbers of patents per Population is still incredible low.

  6. I meaned with Germany had industrialisation later. UK had earlier big corporations or big factorys and many people already worked there.

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