Somebody wants subsidies.

Much easier than innovating or being more efficient.

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 wealth).

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.

The boss of the CBI says he would support cutting the allowance on cash ISAs to encourage more people to invest in shares.

Wow, yeah, make the rich richer.

Fuck off.

What would make more people invest in shares is having a decent standard of living where they aren’t living paycheck to paycheck, and the transparant and simplified ways to buy, hold, sell and pay taxes on stock, with the easy access to knowledge to which stocks give dividends , and how much dividends they give.