The government should use its partial nationalisation of the banking system to exert greater control over the amount and direction of lending. We have to restrict the amount that any bank can lend. We have to restrict the purposes for which they can lend it, emphasising loans that will finance a new low carbon economy.
Mmmmm, can\’t you just smell the freedom and liberty there!
Your and my savings (which is what the banks lend after all) must be put to uses which the Green Party approves of. Never mind what we want our own money to be spent on or lent to, they\’ll take that decision off our hands.
Government funds can be used to cut taxes or to create jobs. If used for tax cuts then consumers are likely to spend, especially in the period before Christmas. Because a lot of what is stocked in shops is imported from abroad, the benefit of this consumption will go abroad. That’s in part why we have a permanent trade deficit. As a result of the way our economy is geared, tax cuts tend to create new employment in other countries, and not in the UK. That means we export most of the benefit of tax cuts to other countries, while still having to finance the cuts.
Some 80% of the UK economy is entirely domestic. So whilethere is an arguable point here, it\’s 80% untrue that any stimulus will simply flow abroad.
Although imagine if it is true, that all the stimulus does flow abroad? Is there something wrong with taxing the rich to provide employment and benefit for the poor? We are after all the global rich and the people we buy things from largely the global poor…
For a green economic policy, there are obvious attractions in a more controlled international financial system that offers a good deal of domestic policy autonomy. This would require the introduction of capital and exchange controls.
The usual failure to understand whose money it is. It\’s not the Government\’s, it\’s not the nation\’s, it isn\’t society\’s. The money belongs to individuals, thus placing restrictions upon where they may move or invest it is a direct restriction upon individual liberty. So bugger off is the correct response here.
It\’s that last, the corporatism, which makes the epithet of "eco-facism" valid.