Stump thinking

Wages are too low

People are under-employed and underpaid in the UK. The result is we simply don’t have enough to spend to rebalance the economy.

The UK won’t tackle the tax gap

The UK government says there is £35 billion of unpaid UK tax. I say it’s maybe three times that. And we’re sacking tax inspectors, still. As a result the level playing field that is required to build the confidence for small business to invest, most especially in skills, does not exist. Instead tax cheating prospers. We shoot ourselves in the foot by perpetuating this policy. And it is a choice. But it’s one that’s not being changed soon. That costs us growth.

The people don’t have enough money so the solution is to take more off them?

Sigh.

16 comments on “Stump thinking

  1. The people are spending more than they are earning and he wants them to spend more to rebalance the economy.
    Black is white.
    Murphy wants to run the Ministry of Truth

  2. He’s revisiting his old stumps. His tax gap figure was exposed to the full glare of the national media during Corbyn’s election campaign. We all recall that even his buddy Jolyon Maugham laughed at it and Ritchie became very keen to point put that, yes, the tax gap that could be closed was only about £35 billion. Yet here he is again, making all his old claims. Even being nationally discredited and humiliated doesn’t knock hIm off his stride.

  3. Dear Mr Worstall

    Mr Murphy obviously hasn’t heard of tax poverty.

    Tax abuse is rife in this country – that is, the abuse of the people by excessive taxes.

    The joy of tax is paying less, and the tax gap is the difference between what the government takes and what it should take – a few hundred billion less.

    DP

  4. ‘As a result the level playing field that is required to build the confidence for small business to invest, most especially in skills, does not exist.’

    Oh, yeah, more government harassment will surely give small business confidence . . . wait . . . what?

  5. Ironman – “Even being nationally discredited and humiliated doesn’t knock hIm off his stride.”

    No more than it bothers you. Funny old world innit?

  6. @ Dennis the Peasant
    Well, to a pendant like me it would require that it returned to balance: so exports matching imports, spending matching income, and within the latter capital investment (and maintenance spending if that is not classed as captal investment) matching the rate at which capital was depleted through wear and tear, obsolescence and destruction.
    This is utterly opposed by Murphy and his fellow-travellers who want to spend more without earning anything.

  7. DtP: What exactly does “rebalance the economy” mean?

    I think I can help with this. It means let economic policy be determined by someone who is unbalanced.

  8. People are under-employed and underpaid in the UK.

    Which is why, of course, we need mass immigration in the U.K.

  9. Rob

    He seems totally unaware of immigration and refuses to allow most comments mentioning it. I have to agree with Ironman – he is like the Waffen SS who went crazy after Germany surrendered in Bohemia – seems determined to pursue a ‘scorched earth’ policy….

  10. “People are under-employed and underpaid in the UK.”

    Those two are inconsistent. If you’re under-employed, you’re charging too much. You have to lower your prices to increase your opportunities for employment.

    It’s like a shop-keeper complaining that their goods are both priced too cheap and not selling well enough. No. If they’re not selling, the price is too high. The competition can supply them at a lower price, so either you match/beat them, or you drop that product and find something else to supply. Something that people want and can’t currently get enough of.

    But shop-keepers always want to exclude the competition instead, so they can keep on charging more. That sounds great – but only if you ignore the fact that everyone else is doing it too, so you lose more from everyone else’s inflated prices than you gain from inflating your own. People tend to be a bit short-sighted about that. They can see that “I’ll be able to raise my prices! Win!” but don’t get as far as “But so will everyone else! Lose!”

    “Which is why, of course, we need mass immigration in the U.K.”

    Yep. Competition.

Leave a Reply

Name and email are required. Your email address will not be published.