i see the tory government will announce today plans to encourage investment in small business. The idea is to create jobs by expanidn the private sector.
They are going to invest 200 million pounds in this. The encourage banks to lend to small businesses.
Now.. we have just had massive cuts to public spending so I'm not sure where the 200 million pounds is coming from.
Also the banks have been bailed out with massive amounts of public money ..so I presume the money they will be encouraged to lend to the private sector may be the money we paid to get them out of the hole they had dug for themselves ( by lending too much without thinking!)
So they will use our money to lend (and receive interest on repayments) to private companies who will employ people at poor rates of pay ...or even move abroad if going gets tough..taking those jobs with them.
So to put it simply..the tax payers' money has been used to shift investment from public to private sector. The banks have been saved in order for them to return to their habit of lending. If the businesses they lend to are going to make money then we need people to buy their goods....to do this , people need to have money...to have money they need to have jobs. We have been told there will be at least 500,000 unemployed as a result of the massive public sector cuts...
Would it not have been possible to;
a/ spend less on bailing out banks..surely if the tories believe in capitalism then public money should not have been used to prop up failing businesses
b/ invest more in public sector
I will admit that iam not great at 'sums' and not that knowledgable in economics..but i am quite good at history and i have seen this 'shift of investment' by right wing governments before. The result will be greed.. corruption.. and private business pulling out as soon as going gets tough...taking YOUR money with them and leaving you unemployed again.
However..in the meantime the tories can guarantee votes ( and money) from these businesses.