Tuesday 25 September 2012

Private Sector Power

I really do despair at the lack of creativity at Westminster. No spark, no originality, no enthusiasm and as a consequence, no postive result.

A Quick Recap......
The Government is desperate for the Private Sector to grow. Firstly, this will create jobs and replace the ones that have been lost with the Public Sector cuts. Secondly, it needs the Private Sector to invest, expand and grow us out of this economic mess. In other words, the Private Sector is crucially important.

Latest Government Thinking......
The problem is, the Private Sector isn't growing at all. No expansion and only limited jobs being created. Why? The Government believes that the banks are not lending simply, freely and cheaply enough (didn't that get us here in the first place?) to the Private Sector to instigate the economic boom that the Government wants.

Only one thing for it then (well in W1's mind)......set up a bank themselves. The headline being grabbed with this one will centre on the £1billion that taxpayers will put into the bank, with the key remit being to lend to small and medium sized companies.

My Thinking......
1. Nice headline......you forgot to mention where the £1 billion is coming from!

2. Exactly how is this going to help to stimulate the economy in the short term when it is predicted to take at least 18 months to establish.

3. Why does money need to be created to spark economic growth? Why not give tax breaks to businesses on energy, fuel and profit that can be used to invest / grow?

4. Why not use key business leaders for their experience and entrepreneurial flair to ignite the Private Sector that they dominate with fresh ideas?

It just all feels like an accountant is being used to fix a lorry. Completely inappropriate.

This isn't rocket science is it?

1 comment:

  1. Great insight as usual, maybe they think the "plebs" will be fooled by all this politicking.

    ReplyDelete