Stop the banking crisis happening again
“Have national banks & untility companys etc, who will make money for the taxpayer and ensure that private firms are not profiteering”
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2. How does it fit with Compass’ core beliefs of equality, solidarity, democracy, freedom, sustainability and well being?
Sustainability as it will make companies work to win and keep the customer, the government could drop the price of fuel to make sure that other companies follow suit, they could offer competitive mortgages/savings to do like wise, there would be no “lag” on prices coming down or going up, it would be open and above board and the tax payer will earn money thus reducing tax in the long term.
3. How does it build the institutions of social democracy, like social groups and collective and cooperative forms of ownership and control?
There will be no exclusions and it would be for the benefit of UKPLC, the company could sell surplus abroad, or could offer expats better rates that in the country they are living in keep the taxation etc
4. How much will it cost or raise and where will any cost come from?
Banks - Nothing we already own them, we would have to choose which one.
We would need to purchase a Utility company or start a new one at cost, this could be taken from the tax on these business
5. Which groups in the electorate are likely to support or oppose this measure? Is there any polling evidence you have on this?
No evidence, however most people will support this as they will want to put money into a company and see tangible benefits to their pocket.
6. Is there a place or country where it’s worked? Please provide some information.
I have no idea
7. What are the three main arguments in favour/against it?
For
Means the Government has the opportunity to step in when there are unjust increase in price of fuel.
Means the Government will be able to reduce lending rates to make the market competitive
Means that savers will have a decent income
Against.
To much power for No10
This goes against a free market
Gordon Brown might not be the right person.
Comments
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David Chester
This simply would not work. The bank crisis was due to the bubble of land and real-estate prices bursting and the foreclosures on mortgages that followed when the early motrgagees realized that it cost them less to walk away than to keep up thir payments and speculations.
So to stop the repeat of the crisis one needs to legislate something to do with the land not the banks.
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If you look at the series of real UK house price data, the bubbles always start inflating at the point where there has been some relaxation of credit controls. The land market plays a significant role in the process - and can be easily addressed by land value taxation - but it is not the main driver.
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Great piece! I certainly liked this blog post - fresh and concise, exactly what we like
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Posting Comment...
March 12th, 2009 at 6:53 pm
This simply would not work. The bank crisis was due to the bubble of land and real-estate prices bursting and the foreclosures on mortgages that followed when the early motrgagees realized that it cost them less to walk away than to keep up thir payments and speculations.
So to stop the repeat of the crisis one needs to legislate something to do with the land not the banks.
March 12th, 2009 at 7:29 pm
If you look at the series of real UK house price data, the bubbles always start inflating at the point where there has been some relaxation of credit controls. The land market plays a significant role in the process - and can be easily addressed by land value taxation - but it is not the main driver.
March 5th, 2010 at 1:54 pm
Great piece! I certainly liked this blog post - fresh and concise, exactly what we like