How to fix the UK economy for dummies

My recent blog titled 'What's wrong with the UK economy for dummies' as you can imagine just points out flaws.

I hate people who try to sound clever by pointing out flaws but offer no improvements for which they can be scrutinised.

So here is how I (with some tidying of loose ends) would fix the economy.

The fix?

Fundamentally get house prices to the right relative level (about half what they are) get debt  to the right level and mortgage interest rates to around 5% so that pensioners can spend their interest and banks make on the 1% in the middle. Then stop it happening again.

We will need to introduce capital controls like Malaysia 1978 (link)

We were ok until 1986 when we deregulated domestic markets (link. See 4). And stocks went up in value many times their worth. Not that financial 'experts' will see a problem with that.

Protect local labour rates from direct competition internationally using sensible import duties.

Encourage a sustainable population that is better distributed over the UK by having nationalised essential services and use them to action full community developments where business might not, or attract businesses with attractive 'temporary' perks for private businesses who do invest early.

We will need an adjustment period where everything is allowed to inflate locally by about 8% / year for 5 years . . everything including salaries but NOT PROPERTY / LAND. 

Limit mortgage lending to 3x highest house hold salary. Keep them property prices down. But need to stop wealthy family trusts buying to let. Simple. #Right2Buy Private. If you rent a property for 2 years + you have the right to buy it for the midway point between what it was worth when you moved in and what it is worth now but not below what the landlord paid. No fees for landlord.

Stop with this stamp duty rubbish. Moving house is tough enough. We want people to live in suitable accommodation leave the 4 bed detached house near a school when the kids leave.

Printing money inflates locally and devalues internationally so that is easy. Just print it and spend on the things that need fixing. 'Need' means 'essential' so on national project. Get these essentials back under national ownership and just manage people better. Examples of things we can nationalise are refuse & recycling #right2work. And pay off the National debt. Why are we in debt. My grandparents are not in debt and the UK is at least twice their age.

The big problem here is foreign investment and the price of global commodities  Well hey, guess what. It's going to happen anyway. We need simple wind tidal and solar energy, 100% recycling and a static population some time in the next century.

More part buy homes for young couples while the adjustment takes effect, place nice low subsidized interest rate on that, adding a #Right2BuyPrivate law free up access to the home ownership and stop this wealth bubble where poor hand to rich for nothing more than being rich first. Greedier landlords no longer offering a service will get bought out quicker.

More radical, give to money to every citizen,to to pay off debt first, those who are locked in debt because they overpaid for their property will at least be in part reimbursed. 

Young families will pay off their debt or boost their deposit, and the banks will have more liquidity, but less debt interest income ...shame, to all those fake Christians in parliament, charging interest is a sin anyway. Banks should be providing an essential service, nothing more. Increase capital reserves to something like 20%. This will counter the inflation from the true currency we just printed and shared out.

If people have any cash left then they can choose to spend it on the new not disposable priced goods people will be employed to make or repair here. Since mortgage payments will be so much less they will be able to afford locally manufactured goods anyway. 

Sure tech progress will slow down. Admit it you waste too much time tweeting anyway. Nothing better than a run in the park and back home for a good book and a cup of tea.

The planet can not afford this level of consumption for another 200 years. The faster we hit the wall the more it will hurt, if it were us hitting the wall I'd be ok since we let is happen, but others will bare the burden of our consumption debt. I personally have no option but to act.

There are few measures that would need to take place first which the Financiers and Landlords would never allow. 

• 1. Limit capital flows to stop politicians and their mates cashing in on the adjustment destabilizing into a bust, ready to manufacture another boom. This may also require that we leave the EU unless capital flow restrictions are placed across EU. We could just enter trade agreements like China and US if need be (they are doing ok).
• 2. Stop over taxing hard working wealth creators who tend to spend or invest in innovation anyway. Top rate of tax 30%. But on everything. Capital gains, dividends, and anything else they dream up.
• 2. Tax wealth, all of it above lets say £700k including trust stakes at 1% / year. This will be very messy but simply put, we can no longer allow a few to own everything and rent it back. The super rich are not that happy and the poor are missing out on a life worth having. Yes wealth hoarders will leave UK but will have to sell there local excesses at price someone here is willing to pay.
• 3.  Lets just have landlords who provide a service that tenants want. We are too civilized now to have land owning families taxing peasant families half their earnings because of a 100 year old trust fund. #Right2BuyPrivate should be extended to the private sector. No fees for landlord. Terms to be considered but suggest after 2 years they may force purchase at midway between value when moving in and when deciding to buy. No silly get outs.
• Planning permissions to cost the land value change and that money in full going to the local authority. There is no such thing as a magic money tree, someone less well off pays that in the end, better and fairer to invest planning permission profit in the community that is permitting it.
• Import duties that mitigate local hour labour rates. E.G china may be 50%.
• Import duties that mitigate against environmental efforts for supplier. Not relevant now but would be if we make the sustainable conversion and wish to encourage others to match us.
• Nationalised house building, recycling, energy, farming and banking to run in parallel with private who must match national salaries and staff numbers in their government contract bids
• A #right2work and a #need2work. No one should not have something useful to do for 20 hours / week. We are going to make work pay. No excuses for those who don't want to. The new national energy, housing and food companies will take them on and train them up if private sector will not. If they do not turn up they will have privileges docked. eg, loss of console, TV, curfew. We do it to kids to teach them discipline, why not the big kids who have fallen into bad habits and bad attitudes curtsey of the hopelessness capitalism places on the bottom 50%.
• Oh. None of this can happen without democracy. That means all those Investors and chairmen with other interests having money thrown at them should find being an MP impedes their personal business opportunities. MPs should be paid well to represent you and be willing to BARE ALL now and in the future for the privilege.

Please consider www.SMART-voter.org.