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submitted 5 days ago by [email protected] to c/[email protected]
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[-] [email protected] 7 points 5 days ago* (last edited 5 days ago)

How about banning large corps from issuing shares abroad? Britain is too financialized. There is no need to pump more people's money into shares.

In her Mansion House speech to City leaders, Rachel Reeves is expected to consider cutting tax breaks for people parking their savings in cash ISAs, in a bid to encourage more investment in stocks and shares.

People parking their savings in stocks doesn't increase investments in real sector. In long run without a Government sector, increases in private profits comes from private investment financed by bank loans created from nothing (inside money).

That applies to new equity (shares) as well, the money to buy newly issued shares (IPO) must come from retained earnings (which come from previous investments or govt deficit and is limited in amount), or bank money creation (which is constrained by bank's willingness to lend).

Funny how the land of Keynesian economics is now implementing the most braindead monetarist economic policies. Acting as if shuffling numbers around does anything.

Edit: I believe the hope is that this will inflate the prices of shares, which can then be used as collateral to get loans for cheap from private banks. But then that money is unlikely to be used for real investment instead just speculation.

this post was submitted on 09 Jul 2025
23 points (96.0% liked)

UK Politics

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