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.
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?