“It's all about the money!”

July 30, 2019

Radical Ideas were needed to get the UK out of recession and Mark Carney seemed to have made a start. The Canadian picked to run the Bank of England for the next 5 years made the move to keep interest rates low until unemployment fell to 7%. A good start, but we should also be thinking of wider options and being a lot more #experimental, rather than just playing in the same economic sandpit all the time.

 

Just in the way that Japan is considering now and what China did to Shenzhen in the late 70's, we need to be experimental when it comes to creating and sustaining growth. Shenzhen in China is the world’s prime example of a #successful economic zone. Just a small fishing and farming town north of Hong Kong in '79, it was used to test free market economics, ideas that were too radical to try across the whole rest of the country; it is now a bustling industrial #metropolis.

 

Now obviously we are not as advanced as Japan's industries to have to worry about allowing the first robot driven cars to be allowed legally on the roads, or making I-Robot movie- like policies on robot interactions with humans in public already.

 

But let's look at other tax ideas or things that could be piloted as see how they would be received; abolish or at least lower corporation tax to attract companies to areas or cities with unemployment problems perhaps. Low tax havens do work and in time the growth can create better results (and generate more tax overall for governments) but these and other ideas do require risk and -gasp- lowering tax. 

 

It's been thrown between political parties that you can't just purely invest and spend your way out of recession, but don't forget you can't tax your way out of it either!

 

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