So in #1 you've "invented" QE. I particularly like the idea that the BofE may fund gilt purchases with an interest rate in excess of the bond coupon! That would really incentise investing!
In #2 you've "invented" stockbrokers. See for example ii.co.uk. Others are available....
Very interesting point on labour flexibility, almost an argument for going for continental type inflexibility to get the higher productivity they enjoy albeit with the higher unemployment that goes with it. Although the US has flexibility and high productivity but crucially seem to be able to invest heavily and successfully. Some great ideas on how to encourage longer term employment contracts. While they’re about it maybe they can fix the ridiculous NI contribution employers have to make and the subsidisation/encouraging of companies not paying people enough given income support from the govt. Re our manufacturing capabilities Nissan did actually come to mind when I was writing but I couldn’t think of anyone else, not that means much given I’m no expert on U.K. companies.
Great article Michael. In terms of improving business investment, how do we do that? Hasn’t experience shown that we just aren’t very good at making things (maybe with the exception of some high end cars, engineering parts, stereos) and maybe will always be a service exporter rather than much else
So in #1 you've "invented" QE. I particularly like the idea that the BofE may fund gilt purchases with an interest rate in excess of the bond coupon! That would really incentise investing!
In #2 you've "invented" stockbrokers. See for example ii.co.uk. Others are available....
In #3 you've said nothing.
Well done!
Very interesting point on labour flexibility, almost an argument for going for continental type inflexibility to get the higher productivity they enjoy albeit with the higher unemployment that goes with it. Although the US has flexibility and high productivity but crucially seem to be able to invest heavily and successfully. Some great ideas on how to encourage longer term employment contracts. While they’re about it maybe they can fix the ridiculous NI contribution employers have to make and the subsidisation/encouraging of companies not paying people enough given income support from the govt. Re our manufacturing capabilities Nissan did actually come to mind when I was writing but I couldn’t think of anyone else, not that means much given I’m no expert on U.K. companies.
Great article Michael. In terms of improving business investment, how do we do that? Hasn’t experience shown that we just aren’t very good at making things (maybe with the exception of some high end cars, engineering parts, stereos) and maybe will always be a service exporter rather than much else