Fascinatng that `brexit` isn't mentioned once in that article. Making trading harder with your closest neighbour can't be a great move for the economy.
How the U.K. broke its own economy
81–90 of 784 posts
Re: How the U.K. broke its own economy
#82My own [local government] is so stupid its own massive 7-figure park project got blocked by [local government] planning halfway through. For about a year instead of a park we’ve had two massive holes surrounded by fences. Too many taxes, too much nimbyism. This one really is that simple.
This happens everywhere in enterprise and government because policies and processes are designed to avoid mistakes or embarassment at any cost (because those risks are internalised by the bureacracy and therefore "real") but do not account for the cost of not being able to get anything done, because those are externalised and everyone involved in the various committees and review processes gets paid regardless.
I wish there were better ways to align incentives here.
Re: How the U.K. broke its own economy
#83Re: How the U.K. broke its own economy
#84Earlier quoted context omitted.
You're surely joking. The IMF isn't bailing out the UK, and there aren't 3 day week debates because of the failing power supply. What's led to the death of the Conservative party is them doing exactly the opposite what a lot of Conservative voters want: bigger economy, and slower immigration.
The UK economy is already pretty small per-capita compared to other first-world countries. I'm certainly not one to argue for growth, but what is it about UK's conservatism that demands de growth? It strikes me as antithetical to the liberalisation that I would think would form the right flank of the spectrum. From my perspective, even economic concerns are driven by fear of immigration: it's just the same old "immig…
> The UK economy is already pretty small per-capita compared to other first-world countries.
? Where does it rank? What is per capita GDP?
Re: How the U.K. broke its own economy
#85Earlier quoted context omitted.
You're surely joking. The IMF isn't bailing out the UK, and there aren't 3 day week debates because of the failing power supply. What's led to the death of the Conservative party is them doing exactly the opposite what a lot of Conservative voters want: bigger economy, and slower immigration.
Didn't they get more independence with Brexit? Regarding the immigration, sure, the Conservative voters maybe want less of it, but rich and influential Tories actually like immigration as it allows their businesses to thrive (even more). The UK has more capital going around than her own people.
> The UK has more capital going around than her own people.
Wealth and income are not zero-sum. Generally, people produce more than they consume (or we'd all be living in caves). Reducing people reduces output, growth, and wealth.
Re: How the U.K. broke its own economy
#86The core argument - that the state is getting in the way of the private sector fixing everything - is clearly false, at least in the case of the UK. If that were the case, public transport (which underwent radical privatisation and deregulation across the UK some 40+ years ago), would be the cheapest and most effective in Europe. In fact, it's the most expensive in Europe. It is all currently being wrestled back into…
I googled the transportation privatization
https://en.wikipedia.org/wiki/Privatisation_of_British_Rail
So the UK rail network was privatized in the 1990s with tracks and stations remaining under government control and private companies bid for a 'franchise' running train services for whole regions. So basically franchises operate as regional monopolies and meaning passengers don't have any real choice of providers? The competition only existed briefly during the initial bidding process which the gov decided on.
Very similar to Canada's telecom history where they are private corporations on paper but they are state sanctioned local monopolies/oligopolies in functional terms. Or our 'private' highway which was given a 99yr lease for a low one-off payment that charges extremely high tolls https://en.wikipedia.org/wiki/Ontario_Highway_407
Re: How the U.K. broke its own economy
#87Everyone who bought into neoliberalism in the 80s is now experiencing economies that are mysteriously failing to thrive. Correlation isn't cause, except when it is.
neoliberalism is strongly against NIMBYism and other restrictions on land that are a big part of the UK's problems from my understanding
Re: How the U.K. broke its own economy
#88I have some friends over there and they (or their employers) are cutting back on their business expenditures, staffing and overall outlook. The new payroll taxes (unemployment insurance?) are going to bite both employers and employees alike. Taxes are too high, there's too much red tape for businesses and successive governments have failed to invest in anything outside of the "south" (e.g. Greater London). I was (hal…
I don't know why you think the north and Scotland would be better off together. The south east would only get richer under such a scenario. Taxes-too-high is a common refrain but income tax + national insurance takes 26% of my 95th-percentile income. Is that so bad?
if you are an employee and that is direct compensation (not deferred capital gains) then your taxes are lower than California
Re: How the U.K. broke its own economy
#89I have some friends over there and they (or their employers) are cutting back on their business expenditures, staffing and overall outlook. The new payroll taxes (unemployment insurance?) are going to bite both employers and employees alike. Taxes are too high, there's too much red tape for businesses and successive governments have failed to invest in anything outside of the "south" (e.g. Greater London). I was (hal…
I don't know why you think the north and Scotland would be better off together. The south east would only get richer under such a scenario. Taxes-too-high is a common refrain but income tax + national insurance takes 26% of my 95th-percentile income. Is that so bad?
I'm in the 45-49 age bracket this year. In BC (Canada), a 95th percentile income for that age is $126,000 (2021 Census). Before any deductions (specifically retirement investments that reduce taxable income) I'd be looking at a 26.85% tax rate, with a marginal rate of 38%. So pretty much the same rate here.
Not to say that Canada's overall economy is particularly any better than the UK's, and especially Trump's tariff threats will do a number on us.
Re: How the U.K. broke its own economy
#90 A new report, titled “Foundations,” captures the country’s economic malaise in detail.