Nationalisation. The railways were never privatised. Track and infrastructure were privatised and owned by a consortium - Railtrack, subsequently taken back into public ownership and now Network Rail. But rail services were never privatised, they are franchised. But a franchise can only be given by the owner of a brand/service. The Government caps rail fares and awards subsidies of around £12 billion annually. That doesn’t sound like privatisation. Franchise periods are too short, capped rail fares and the fact trains travel mostly empty for about 70% of the time, mean service operators struggle to make a profit and hand back the franchise. Nowhere in the World can a railway run without significant taxpayer support. They are 200 year old technology which would be replaced except for Governments insistence they are not, hence massive subsidies to keep them going.
Water. Grossly under-invested prior to privatisation. Companies forced by the regulators to have “environmental” regulations as their priority rather than investing in upgraded distribution and sewage collection. Again, price caps and restriction on dividend payments making attracting investors impossible. Plus of course 15 million more people since privatisation.
Energy companies are the victims of 30 years of reckless, confused, ruinous Government policy.
Royal Mail. A public monopoly became a private monopoly. It must provide a postal service - delivery/collection everywhere. That is ruinously costly given mail volumes have dropped. Its day is done. Take away its monopoly and let companies compete in all areas if and where they can.
The public mostly are uninformed, brainwashed and dumb as a bag of spanners. Government is the cause of all our problems, so let’s have more Government involvement. The Great Unwashed imagine nationalised companies will be “more efficient”, have lower prices - yes you dummies they will, but you will pay more taxes to subsidies them. £1 off bus fares = £1 on your taxes!
But like most observers you are clouded by a biased point of view.
The reasons why businesses fail is simply because of a lack of SPENDING by the general public businesses and government. Mainly because of a lack of money from an insufficient amount of money and SPENDING in the economy so they were bound to fail.
It wasn’t because of an overall lack of money. Money didn’t suddenly disappear.
No! It was the same then as it is now. A lack of willingness to SPEND the money they hold. An overall lack of weight and speed of SPENDING from higher rotation.
If there was a sufficient amount of that total money being SPENT then they would not have failed!
They were set up to fail because if the lack of receipts and then a lack of investment and together that’s a spiral into the depths of the abyss.
It had did all to do with nationalisation. But it had everything to do with a lack of money! A jack of investment because our then governments were themselves bankrupt!
The overall lack of or willingness or confidence to SPEND money by those holding that money meant that our governments were underfunded and we were underpaid and so insufficient money was being rotated to trigger a sufficient amount of tax take to properly fund those companies and industries.
It’s the same now! Too much money is being withheld in bank accounts here and abroad that sits idle unused unspent and contributing sod all to the money supply nor is it even taxed!
There is no tax on unspent money! None!!
And also successive governments have been so blind to how tax is triggered!
Tax is triggered by SPENDING. We j ie this because NOT SPENDING MONEY triggers NO TAX. None at all!
So tax has to be triggered by SPENDING MONEY because NOT SPENDING MONEY triggers NO TAX. NONE.
Like income tax is triggered by the SPENDING of Money by employers on the wages and taxes of employees. It’s SPENDING that triggers TAX.
So it should be very clear to all that to give sufficient money and TAX revenue then money has to be SPENT.
Keynes was correct. But he had no clue as to how to properly control money and Spending because…… He didn’t have computer bank accounts and smart payment cards Rodney!
So until you start to see the real truth of how businesses fail and how nationalisation fails and his tax is triggered you will continue to get the wrong outcomes as we have all endured because of ignorance to the real truths.
So Mathew I’d like you to think about what I’ve said and stop thinking wrongly and perhaps you might start making proper policies to ensure money flow in sufficient amounts to give government surpluses instead of waiting for confidence and growth to return!
It certainly won’t while those holding money get paid more for NOT SPENDING than forcing SPENDING!
I would say that it’s the best they could do without investment into better goods!
Pretty much as we see now, with the water industry taking money without investing it’s the same with the steel industry, the car industry, the coal industry etc and it’s the same with the NHS which has to suffer from a lack of investment. Schools and roads and defence. You name it and it’s underfunded.
It’s a theme. And it’s a direct result of an insufficient flow of money not an insufficient flow of need or of capability.
No matter how many workers turn up, if the proposed consumers haven’t got money to spend no amount of work will be sufficient.
And it follows that tax is totally reliant on money changing hands to trigger tax.
We know that because SPENDING money not just passes money onto others to SPEND but it also triggers taxes. All taxes.
We know that’s true because NOT SPENDING triggers no tax at all!
So governments are underfunded as a result.
For us to survive and for business to survive and for governments to survive on each others SPENDING of money then money has to flow freely! Withholding money and allowing it NOT to flow and also to have insufficient money amounts of total money flowing are the cause of recessions.
So it must mean that all money has to be spent all if the time to make everything work!
We could still be driving British cars had BL had better investment and with punters who have money and gave to spend it. That’s the truth.
Any idiot can crash an economy, make cuts, not spend not invest and allow decline. It takes vision and money being spent to reverse that decline.
"We could still be driving British cars had BL had better investment and with punters who have money and gave to spend it. That’s the truth."
As it happens, I come from the West Midlands and witnessed the decline and fall of our car industry. The fact is that no one, including us locals wanted to buy BL cars. The were badly made, unreliable and the factories were out on strike every five-minutes. The better off bought flash BMWs and Mercs and the rest of us went for reliable, reasonably priced, full-featured Japanese cars.
Successive governments, Labour and Tory, tried it your way and failed: it just made the unions more militant.
No amount of macro-economic woo-woo can change the fundamentals: if you make products people want, customers will come, and, if you simply demonstrate that will make a profit, so will finance.
David come on! If BL had better designs like Japan and Germany, had plants like those and built better cars of course we would still be buying those BL cars today.
David there are still many cars built by BL going round the streets today! British cars still go to Brighton and back every year. Not that I say we should drive them!
It’s the lack of money invested in BL that was the problem then just like now!
I know first hand. My Gather was a motor dealer. The steel and processed used in those cars was the problem! Not the workers.
Governments took profit and failed to reinvest. Least if all in the wages of people who like now are underpaid and undervalued. Not just that but oppressed by high living costs. David it’s the same problem!
You are clouded by the cure of an Austin Maxi! I still have nightmares myself! Trying to stop rust!
But you mustn’t be clouded. We can build cars just the same as Germany and Japan! We still do. Rolls Royce and Bentley are German owned and Honda and Nissan are Japanese and French and all built here!
So come on David don’t get upset think better.
Misting the workers in thise industries we’re fighting for their jobs and livelihoods. They were seriously let down by those charged with fixing the problem. But it’s too easy then as now to cut jobs instead of investing in them.
Cut cut cut I hear! It takes SPENDING of our money to ensure jobs are safe and government get sufficient to invest as they should have then snd should now!
But we won’t ever get that whilst we sit on vast sums of unspent money. In banks here and abroad. It’s doing nothing for the cause!
Nationalisation. The railways were never privatised. Track and infrastructure were privatised and owned by a consortium - Railtrack, subsequently taken back into public ownership and now Network Rail. But rail services were never privatised, they are franchised. But a franchise can only be given by the owner of a brand/service. The Government caps rail fares and awards subsidies of around £12 billion annually. That doesn’t sound like privatisation. Franchise periods are too short, capped rail fares and the fact trains travel mostly empty for about 70% of the time, mean service operators struggle to make a profit and hand back the franchise. Nowhere in the World can a railway run without significant taxpayer support. They are 200 year old technology which would be replaced except for Governments insistence they are not, hence massive subsidies to keep them going.
Water. Grossly under-invested prior to privatisation. Companies forced by the regulators to have “environmental” regulations as their priority rather than investing in upgraded distribution and sewage collection. Again, price caps and restriction on dividend payments making attracting investors impossible. Plus of course 15 million more people since privatisation.
Energy companies are the victims of 30 years of reckless, confused, ruinous Government policy.
Royal Mail. A public monopoly became a private monopoly. It must provide a postal service - delivery/collection everywhere. That is ruinously costly given mail volumes have dropped. Its day is done. Take away its monopoly and let companies compete in all areas if and where they can.
The public mostly are uninformed, brainwashed and dumb as a bag of spanners. Government is the cause of all our problems, so let’s have more Government involvement. The Great Unwashed imagine nationalised companies will be “more efficient”, have lower prices - yes you dummies they will, but you will pay more taxes to subsidies them. £1 off bus fares = £1 on your taxes!
I despair.
An interest piece Mathew.
But like most observers you are clouded by a biased point of view.
The reasons why businesses fail is simply because of a lack of SPENDING by the general public businesses and government. Mainly because of a lack of money from an insufficient amount of money and SPENDING in the economy so they were bound to fail.
It wasn’t because of an overall lack of money. Money didn’t suddenly disappear.
No! It was the same then as it is now. A lack of willingness to SPEND the money they hold. An overall lack of weight and speed of SPENDING from higher rotation.
If there was a sufficient amount of that total money being SPENT then they would not have failed!
They were set up to fail because if the lack of receipts and then a lack of investment and together that’s a spiral into the depths of the abyss.
It had did all to do with nationalisation. But it had everything to do with a lack of money! A jack of investment because our then governments were themselves bankrupt!
The overall lack of or willingness or confidence to SPEND money by those holding that money meant that our governments were underfunded and we were underpaid and so insufficient money was being rotated to trigger a sufficient amount of tax take to properly fund those companies and industries.
It’s the same now! Too much money is being withheld in bank accounts here and abroad that sits idle unused unspent and contributing sod all to the money supply nor is it even taxed!
There is no tax on unspent money! None!!
And also successive governments have been so blind to how tax is triggered!
Tax is triggered by SPENDING. We j ie this because NOT SPENDING MONEY triggers NO TAX. None at all!
So tax has to be triggered by SPENDING MONEY because NOT SPENDING MONEY triggers NO TAX. NONE.
Like income tax is triggered by the SPENDING of Money by employers on the wages and taxes of employees. It’s SPENDING that triggers TAX.
So it should be very clear to all that to give sufficient money and TAX revenue then money has to be SPENT.
Keynes was correct. But he had no clue as to how to properly control money and Spending because…… He didn’t have computer bank accounts and smart payment cards Rodney!
So until you start to see the real truth of how businesses fail and how nationalisation fails and his tax is triggered you will continue to get the wrong outcomes as we have all endured because of ignorance to the real truths.
So Mathew I’d like you to think about what I’ve said and stop thinking wrongly and perhaps you might start making proper policies to ensure money flow in sufficient amounts to give government surpluses instead of waiting for confidence and growth to return!
It certainly won’t while those holding money get paid more for NOT SPENDING than forcing SPENDING!
"The reasons why businesses fail is . . . "
Your searing analysis seems to have missed the obvious factor: because nobody wants to buy their products.
Hi David! Thanks for taking the time to reply.
I would say that it’s the best they could do without investment into better goods!
Pretty much as we see now, with the water industry taking money without investing it’s the same with the steel industry, the car industry, the coal industry etc and it’s the same with the NHS which has to suffer from a lack of investment. Schools and roads and defence. You name it and it’s underfunded.
It’s a theme. And it’s a direct result of an insufficient flow of money not an insufficient flow of need or of capability.
No matter how many workers turn up, if the proposed consumers haven’t got money to spend no amount of work will be sufficient.
And it follows that tax is totally reliant on money changing hands to trigger tax.
We know that because SPENDING money not just passes money onto others to SPEND but it also triggers taxes. All taxes.
We know that’s true because NOT SPENDING triggers no tax at all!
So governments are underfunded as a result.
For us to survive and for business to survive and for governments to survive on each others SPENDING of money then money has to flow freely! Withholding money and allowing it NOT to flow and also to have insufficient money amounts of total money flowing are the cause of recessions.
So it must mean that all money has to be spent all if the time to make everything work!
We could still be driving British cars had BL had better investment and with punters who have money and gave to spend it. That’s the truth.
Any idiot can crash an economy, make cuts, not spend not invest and allow decline. It takes vision and money being spent to reverse that decline.
"We could still be driving British cars had BL had better investment and with punters who have money and gave to spend it. That’s the truth."
As it happens, I come from the West Midlands and witnessed the decline and fall of our car industry. The fact is that no one, including us locals wanted to buy BL cars. The were badly made, unreliable and the factories were out on strike every five-minutes. The better off bought flash BMWs and Mercs and the rest of us went for reliable, reasonably priced, full-featured Japanese cars.
Successive governments, Labour and Tory, tried it your way and failed: it just made the unions more militant.
No amount of macro-economic woo-woo can change the fundamentals: if you make products people want, customers will come, and, if you simply demonstrate that will make a profit, so will finance.
David come on! If BL had better designs like Japan and Germany, had plants like those and built better cars of course we would still be buying those BL cars today.
David there are still many cars built by BL going round the streets today! British cars still go to Brighton and back every year. Not that I say we should drive them!
It’s the lack of money invested in BL that was the problem then just like now!
I know first hand. My Gather was a motor dealer. The steel and processed used in those cars was the problem! Not the workers.
Governments took profit and failed to reinvest. Least if all in the wages of people who like now are underpaid and undervalued. Not just that but oppressed by high living costs. David it’s the same problem!
You are clouded by the cure of an Austin Maxi! I still have nightmares myself! Trying to stop rust!
But you mustn’t be clouded. We can build cars just the same as Germany and Japan! We still do. Rolls Royce and Bentley are German owned and Honda and Nissan are Japanese and French and all built here!
So come on David don’t get upset think better.
Misting the workers in thise industries we’re fighting for their jobs and livelihoods. They were seriously let down by those charged with fixing the problem. But it’s too easy then as now to cut jobs instead of investing in them.
Cut cut cut I hear! It takes SPENDING of our money to ensure jobs are safe and government get sufficient to invest as they should have then snd should now!
But we won’t ever get that whilst we sit on vast sums of unspent money. In banks here and abroad. It’s doing nothing for the cause!
It’s that money that needs SPENDING David!