Saturday, October 08, 2011

How to fix the UK economy

We were just asked on the radio for our five year plan to fix the UK economy, I called in and here is mine. I have studied all the topics involved, some to degree level, and seen both in my life besides one and know the difference.

1) Leave the EU- all it does is suck our very life breath and restrict what we can do without any representation from our votes.

2) Raise interest rates to a sensible amount. Currently borrowing got us in this state already and more will continue it. Savers need to earn money so they can spend it back into the economy and borrowing discouraged. I'd actually ban it for personal use except for one house, but didn't say that bit.

3) One flat rate of income tax, 20%. It would come in around £15-20,000 and then the rich would have no reason not to pay theirs and the total income would probably increase. Everyone would have more to spend and create liquidity in the economy.

4) Use the Keynesian policy as Keynes intended, ie to create production not give to the banks. Use the same billions to set up manufacturing and we will then not be dependent on imports.

5) Nationalise all public utilities. You cannot compete in a closed market as you are selling the identical product- phone calls, railway track journeys etc, and have wrecked our utilities since privatised. Previously there was a 10% profit margin and then the prices were fixed and dropped if it increased. Now we pay as much as they can get.

Current policies help bankers and borrowers and the rest lose big time. All corruption and vote catching as there are historically more borrowers than savers so screw up the economy but get the votes from the fools who did it so they can do it again. No way Jose.

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