Quote:
Originally Posted by Arthurgray50@blu
http://www.msn.com/en-gb/money/news/...cid=spartanntp
When is this Government going to act. Or are they waiting for every major employer to axe everyone, and go for cheap imports form other countries.
It makes my blood boil when the government doesn't act on this. This country, should be the major manufacturer of major goods to go abroad, or in this country.
But they are buying cheap imports. For example, the recent mine closure, which supplied a main power station NINE MILES AWAY. Instead they are importing coals from thousands of miles away..
It does not make sense. Thousands more British Workforce on the dole. And before people say, that TATA are losing money per week, the government should get involved and reduce various taxes they are placing on companies: mad:
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Well, I guess reality denying and hoping for protectionism to save us all is always a good go-to when bad things happens.
First, for all of your bluster, unemployment is lower in the UK than most of Europe, so we aren't doing that badly as a whole.
Secondly, your post twists and turns so fast I'm not even sure you know what you're saying. If there's too many cheap imports of a certain product, how can we compete without being either cheaper or using subsidy? If we can't go down the first route as it would depress wages, the 2nd would basically make for an even worse race to the bottom as each country like China and the rest of the EU etc dashes to prop up their own industry. We've seen this before, hence current EU rules.
I am a proponent of free markets, as harsh as they can be sometimes. Commodities especially have cycles, and if you ride the highs, you must be prepared for the lows.
As for your taxes argument:
1: Corporation Taxes are already being lowered in this parliament, I don't think a few % points either way is going to do much to an industry that has a massive over-supply problem.
2: The other option, subsidies and bailouts, have to be paid for somehow. Would you back a rise in income tax to pay for a fund that bails out every industry in trouble? Not only will this not fly, it wont actually make our economy any better.
Oh, and the procurement issue is a complete red herring. I'm sure everyone wants to buy British, until it costs us more. Also, if every country did this, many UK companies that DO compete on a international level will find their access to government contracts elsewhere cut off, which will end up with just as many companies screwed as it will help.
In any market, if you face competition you can do 3 things.
1: Be Cheaper
2: Be Better
3: Be Different.
If you can't do any of those things, I don't think going cap in hand to the government should be option number 4.