British pound hits record low against the dollar
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Re: British pound hits record low against the dollar
#2All government revenues are the result of taxing citizens. Citizens only have money to be taxed if they are employed in productive money-generating enterprises.
If the laws and regulations of the nation are such that the citizens can’t make money, then the government has no choice but to cut taxes and regulations until private business can flourish again. Otherwise it’s a never ending strangling of business, lower revenues, lower tax takes, and so on in a downward spiral.
I can’t think of any other way out of the problem except enhanced productivity and trade. The government can’t tax what the citizens don’t make. Post-brexit and at the total end of the empire, Britain needs to become something like Singapore or Dubai - a hyper-capitalist free-trade haven.
Of course this will only happen after 10+ years of failure, leading to an erosion of living standards and endless finger pointing and blame. You are already seeing the collapse of the NHS and the FTSE lacking any global relevance.
Re: British pound hits record low against the dollar
#3Scary, this is like the side of the titanic cracking and all the countries on board about to sink.
Re: British pound hits record low against the dollar
#4Maybe the economic ramifications of Brexit were not fully thought out before everyone decided to vote for it.
Re: British pound hits record low against the dollar
#5Crazy times it wasn't long ago that a pound bought over $2.
The interesting thing this week is that the most fragile and indebted country that the EU has bailed out for 30 years straight (Italy) has elected a govt that doesn't like the EU. Good times ahead.
Re: British pound hits record low against the dollar
#6[deleted]
Re: British pound hits record low against the dollar
#7All government revenues are the result of taxing citizens. Citizens only have money to be taxed if they are employed in productive money-generating enterprises. If the laws and regulations of the nation are such that the citizens can’t make money, then the government has no choice but to cut taxes and regulations until private business can flourish again. Otherwise it’s a never ending strangling of business, lower re…
I tend to think people underestimate the amount of govt investment that happens in our communities which will be neglected if left to private enterprise alone.
There needs to be a balance on taxation as too low can limit the ability of the govt to invest when needed.
Also your point assumes money will fairly transfer from private business to citizens when businesses have lower taxes? I don't think that is necessarily true.
I don't know much about the British tax system so can't say if the announced change is good or bad. The market however appears to be worried.
Re: British pound hits record low against the dollar
#8All government revenues are the result of taxing citizens. Citizens only have money to be taxed if they are employed in productive money-generating enterprises. If the laws and regulations of the nation are such that the citizens can’t make money, then the government has no choice but to cut taxes and regulations until private business can flourish again. Otherwise it’s a never ending strangling of business, lower re…
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Re: British pound hits record low against the dollar
#9All government revenues are the result of taxing citizens. Citizens only have money to be taxed if they are employed in productive money-generating enterprises. If the laws and regulations of the nation are such that the citizens can’t make money, then the government has no choice but to cut taxes and regulations until private business can flourish again. Otherwise it’s a never ending strangling of business, lower re…
I tend to think people underestimate the amount of govt investment that happens in our communities which will be neglected if left to private enterprise alone. There needs to be a balance on taxation as too low can limit the ability of the govt to invest when needed. Also your point assumes money will fairly transfer from private business to citizens when businesses have lower taxes? I don't think that is necessarily…
It is true the government can redistribute funds into investment. It’s also true if the citizens don’t make any money, the government will have little to tax and redistribute.
Re: British pound hits record low against the dollar
#10Maybe the economic ramifications of Brexit were not fully thought out before everyone decided to vote for it.
the almost comical resignation of several politicians at the time which resulted finally in the confidence of parliament resting on the shoulders of a an unaccountable buffoon certainly led me to assume the decision had all the ramifications of rolling a pinless grenade into a packed bus. the hubris that followed in not immediately or eventually working to overturn the mistake however has led me to conclude england intends to burn itself to the ground before it capitulates to admitting a mistake.