Wednesday, 29 May 2013

British Party: Speculation in the Economy

Greed and speculation are the ruin of the British economy.

Britain’s Crippled Economy
The economy in Britain is failing mainly due to speculation. Fundamental pillars of economic production have been closed down and transferred abroad, a process that started in the 1970s under a Conservative government and was brought to completion under a Labour government at the start of the 21st century.

As a result, almost all textiles and electronics sold in Britain are imported, as too are so many other products that once were produced in our Country. The reason is that UK High Street chain stores prefer to import products from the Far East that are produced at a wage of £30 to £60 a month.

This is speculation in one of its manifest forms, and results in millions of British people being unemployed. This unemployment costs the State tens of billions of pounds a year in unemployment-related benefits, and the money is either found through Government borrowing, causing the public debt to increase continually, or by increasing taxes, or by a combination of both. The ever-increasing public debt must be serviced with interest, which currently stands at about £50 billion a year. Again more taxes are required in order to pay the interest on the public debt!    

Millions of people and their families living on unemployment-related benefits in Britain live a life of deprivation. All this is a result of speculation that has crippled Britain’s economy, starting with Margaret Thatcher and ending with Tony Blair, when the dilapidation of the British productive economy was complete.  

Extortionate Interest Rates on Loans
The Law in Britain allows for extortionate interest rates on loans that equate to a pound of flesh. People in a desperate situation take on one of these loans because they are desperate, and others profiteer from their desperation by charging unholy interest rates.

The Government does not introduce legislation to stop this, because the money-lenders pay tax on their profits, and, as a result, a considerable amount of the extortionate interest paid on loans ends up in the State Treasury.

Bankers Bonuses, Share Company Executives Bonuses
Britain is renowned for the bonuses that the chief executives of large share companies, such as banks, pay themselves each year on top of their top-salaries. Tens of billions of pounds have been siphoned each year out of UK share companies and paid out as bonuses, often to the executives of these companies who are already on top salaries.

This form of bonus payment is sanctioned by the Government because these bonuses are taxed at about 50%, and so half the money taken by way of “bonuses” wanders into the State Treasury. Salaries above £150,000 a year have been taxed at the 50% rate, which is the highest tax bracket. From April 2013 the highest tax bracket is 45%, but this is still considerably higher than corporation tax paid on share companies' profits. 

The Government goes 50-50 with the chief executives in reducing the financial incomes of share companies, because in this way the Treasury has a greater tax intake from share companies' profits. If executives of share companies on top salaries could not give themselves a bonus, that money would be declared as profit for the company, and would be taxed accordingly, but at a significantly lower rate.
Thus there would be more money to pay out as dividends for the shareholders, or as interest for savers, or for further investment of share companies in the economy. 

Could one of the reasons for the banking crash of 2008 have been too much money going out of the banks as bonuses to "top up" top salaries of chief executives?

Is the Government complacent because this is a way to increment tax intake for the Treasury through the backdoor?  

Regulation of the Economy
British Party campaigns for a fair economy, regulated by laws that do not allow for speculation. Profits must be reasonable, and these may not be made by sacrificing the rights of the British People to participate in the economy and earn a fair wage.
Under the new Constitution, it would not be possible for profits to be made through extortionate interest rates inflicted on desperate people.  

Written by D. Alexander

British Party, for Britain's future: