UK businesses are are NOT “holding back on investment and spending” because of the Eurozone situation alone!
The “great black cloud of uncertainty” is as much due to the UK’s and the world’s precarious and worsening economic situation and lack of real leadership and actions, including your own and the government’s.
However, the REAL, underlying, problem, of which Mervyn King and Chancellor Osborne should, by now, be well aware of, is as follows:
The effects of the ever-increasing use of technology on jobs and work (“The JCB Factor”), and population increases (ie: labour supply), has now ensured that there will be an ongoing, non cyclical, depression for many years to come. Incidentally, the old, Luddite misconception, argument is no longer valid, in that modern technology and its application is far removed from the 18th and 19th century period at the start of the Industrial Revolution, when a large labour input was still needed.
Because of those two factors, the old, proven, method of moving from bust to boom, ie the synchronous creation of growth and jobs, obviously also no longer applies. In fact, it hasn’t applied for a very long time, but the, now well past and impossible, ability of governments, businesses and individuals to borrow significant sums of money, masked that fact.
Even the wealth of the richest depends on the ability of poorer folk to buy goods and services from the businesses owned by the former. They need work to pay for that ability. A point which greedy individuals and businesses appear to have overlooked in their mad scramble to maximise their income and capital assets which have been amassed, in effect, at the expense of the purchasing power of the less-well off and of the state services and benefits they receive?
Therefore, we can only hope that the existing capitalist model (Corporatism or selfish geed?) will be replaced by a social democratic model which reflects the obvious need for wealth to be both created and shared amongst all levels of society.
Furthermore, what is needed NOW, is that wealthy individuals and banks, who have been hoarding income, profits and capital, for some considerable time, should be incentivised to invest it in the UK.
If they don’t, then they should pay far higher income, corporation and capital taxes which the government should then invest and distribute into the economy itself, preferably where it will create the most productive or socially necessary jobs. At the very least that can only but improve the situation and increase business confidence in so doing.
Dithering any longer, at the edge of the abyss of economic disaster and its far reaching social consequences, is no longer an option.
No more excuses then?
Action, action, action!