Their report about what we should all be doing.
What went wrong:
Although the government suggests that the state
is the problem, most economists would support the
view that the real cause of the recession is the drying
up of liquidity in financial markets.
So, what should we do about this?
Seventh, introduce a financial transactions tax
(FTT) at a rate of 0.1%, applicable to all sterling
transactions. Minimally, this would raise a
further £4.2 billion – maximally, it would raise
£34 billion, or about 2.5% of UK GDP.70
Yes, in CompassWorld the solution to economic woes caused by a reduction in liquidity is to tax liquidity so that we get less of it.
So, who thinks that the peeps at Compass would recognise logic if it were to sidle up to them in a pub and offer them a pint? Or leapt up and bit them on the bum?
And that\’s without their ideas about raising income tax rates to 75% by uncapping national insurance.