Wealth is not a measure of value – how much the nation is worth – but a measure of how much it makes.
Wealth is a stock. What the nation makes is a flow. Wealth is the net present value, the stock, of all future production, the flow.
And I’m really sorry here but if you’re going to start out your analysis of the fundamentals of the economy with such a howler might I suggest that you stop for a bit? So that you can go and catch up on those undergraduate studies of economics you insist you never paid any attention to?
And it has to be remembered that the vast majority of businesses in the UK are small. A policy for big business may well not be a policy for business as a whole. The aim has to be the creation of wealth from work right across the board.
Progressive taxation – both in rates and in the choice of what is taxed and how – can help that.
Shifting tax from work onto wealth accumulation and speculation can also help that.
Nope, wealth taxes are known to be more destrutive of economic growth than income taxes. And transactions taxes, like your FTT, more than either, consumption taxes (ie, VAT) less than any of the three. This isn’t one of those bits that is negotiable.
Growth is a macroeconomic issue. It comes from four sources: increased consumption, investment, exports and government spending. There are no other sources.
Nope, growth is a microeconomic issue. In the long run the only real source is an increase in total factor productivity (we’re long past the stage where simple more consumption of inputs is going to make much difference). And increases in TFP come from entrepreneurs, managers and workers figuring out how to do things more efficiently. This isn’t a macroeconomic issue.
Almost all economists now agree that a more equal society is good for growth:
Nope. Almost all economists would agree that some inequality is an essential perquisite for there to be growth. And the standard view about reducing inequality is that a modest amount of such can indeed be good for growth, too much will be bad for growth. The definition of modest appears to be moving the Gini by around 13 points. Roughly what the UK does today.
I think I will be busy.
And this post has only scratched the surface of this issues that will need to be addressed.
And we think you could usefully employ yourself in graspiong the basics of the subject you are so keen to pontificate upon.