Monday, January 12, 2009
An interesting article from Spiked entitled Why Rate Cuts Stir So Little Interest. The quote comes from about half way through. The first half is given ober to how ineffective all Gordo's "initiatives" have been & is thus retreading old ground. As reformed Marxists they may not be high on some radars but should. While they don't go on to say exactly what this new something to invest in is it does chime with what I have been saying about cutting government restrictions, building nuclear power stations & X-Prizes being what is needed.
If government would stop preventing people having investment opportunities I am sure there would be no shortage of money to do so & thus no recession.
If investors knew we were building new power plants to deliver as much inexpensive power as we could use (ie nuclear) no investor would be worried about the lights going out. If they knew they would be allowed to build houses or produce GM crops or even golf courses they would be building doing so. If they knew that the few hundred millions of pump priming to get commercial orbital flight was available all industries which would benefit from space development (ie almost all of them) would shift into high gear.
Instead they know there are billions of government hand out to be made from windmills, though even there the fact that the builders know that their "industry" will never survive on anything but endless government subsidy means that they don't invest unless they know they will be in the black in a couple of years because they fear government might come to its senses.
And if they are wrong? Who cares? It's their own private money, and all those workers will be paying tax on their incomes in the meantime.
I'd top this off with auctioning off landing/take off slots, a form of airborne Land Value Tax if you will.
The same maths goes for power stations or anything else.
And yes I also get pised off with the eco-fascists who say that the investment should be prevented because the predicted increase in air traffic simply can't happen. Even if the Greens had more expertise in air traffic than BAA ;-) the guys putting up their own folding stuff need not be lectured to by subsidy junkues.