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Bank Bail Out


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I own and run (with great difficulty) a small business, principally involved in manufacture.

I get f**k all in the way of tea and sympathy. If I **** up I will be reminded by countless observers that the U.K. is no longer manufacturing base and that I should re-examine my business model. No doubt developing ideas to export to China in order for them to be copied and ripped off by anyone talented enough to position themselves as middle men between greedy western customers and impoverished eastern slaves.

I am not complaining about the position I occupy, far from it. I enjoy doing what I do. I AM complaining about the digusting attitudes shown towards unfashionable businessmen like me compared to that demonstrated towards the thieving scum which makes up the failed moneylenders who have driven this country into the ground.

Financial assistance should be considered for all, not just the likes of Jaguar and especially not the banks. Small businesses are the backbone of this country, I know I am biased but GB can only survive as a manufacturer. By the way I don't need assistance.

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Yes the bank bail out is wrong and so it would be to bail out the likes of Jaguar, even if it were British-owned, making high-end products that are way beyond the reach of most of those whose taxes would be bailing them out (and I live in a city where Jaguar still maintains its design office).

As for small manfacturers, it depends what they are making and what return they can offer to those who taxes would be bailing them out. I would like to see bicycle manufacturing, which started out in Coventry over a hundred years ago, in-sourced again, but there is no political will to do it.

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I can not sypathise with the first post in this thread enough. The poster is quite right to be angry.

He does not need a bailout, is in manufacturing, and actually does something that is creating wealth within the UK economy. When these bailouts are undertaken, one way or another, he will be paying for them. It does not matter whether it is Jaguar or RBS, the money that will pay for these bailouts will eventually be paid in taxation. In practical terms this means that corporation tax might rise, or it may be income tax, in which case he will have to pay more to his workers to give a living wage. As I said, one way or another, he pays.

I would take issue with one point. This is the idea that Chinese workers are slaves. I have lived in China for a long time, and can assure you that I have been in many manufacturing plants there - both state and foreign owned. The working conditions are not great, but not that bad either. In addition, when we see the wages, these do not account for the cost of living in China, which is very cheap.

I did a straight cost for cost comparison of the cost of manufacturing a product in China and France. It was not the differential in wages of workers that created the competitive advantage, they offered a couple of percent cost benefits, but every other element of the cost base. For products with a very high labour input, this will not always be the case, but for many products, it is not cheap labour that makes the difference.

The truth is that we are just not structurally competitive. Every part of our economic structure is bloated with fat, not to mention useless rules and regulations. In such circumstances it is no wonder we struggle to compete. It is all too easy to blame our woes on cheap labour, but that is only one element in the mix, and often is only important for high labour input manufacturing.

We are in an era of hyper-competition, and we leave our manufacturers to fight it out with their hands tied behind their backs. In such circumstances, only the very strongest of businesses can survive. I write extensively on both reform of the economy (e.g. here), and why we are seeing economic crisis (e.g. here) in my blog. You are welcome to visit.

The one certainty in all of this is that borrowing more money to lend to poorly performing banks and companies is not the answer. It was borrowing that created this mess, and more borrowing will just lead to further problems.

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I can not sypathise with the first post in this thread enough. The poster is quite right to be angry.

He does not need a bailout, is in manufacturing, and actually does something that is creating wealth within the UK economy. When these bailouts are undertaken, one way or another, he will be paying for them. It does not matter whether it is Jaguar or RBS, the money that will pay for these bailouts will eventually be paid in taxation. In practical terms this means that corporation tax might rise, or it may be income tax, in which case he will have to pay more to his workers to give a living wage. As I said, one way or another, he pays.

I would take issue with one point. This is the idea that Chinese workers are slaves. I have lived in China for a long time, and can assure you that I have been in many manufacturing plants there - both state and foreign owned. The working conditions are not great, but not that bad either. In addition, when we see the wages, these do not account for the cost of living in China, which is very cheap.

I did a straight cost for cost comparison of the cost of manufacturing a product in China and France. It was not the differential in wages of workers that created the competitive advantage, they offered a couple of percent cost benefits, but every other element of the cost base. For products with a very high labour input, this will not always be the case, but for many products, it is not cheap labour that makes the difference.

The truth is that we are just not structurally competitive. Every part of our economic structure is bloated with fat, not to mention useless rules and regulations. In such circumstances it is no wonder we struggle to compete. It is all too easy to blame our woes on cheap labour, but that is only one element in the mix, and often is only important for high labour input manufacturing.

We are in an era of hyper-competition, and we leave our manufacturers to fight it out with their hands tied behind their backs. In such circumstances, only the very strongest of businesses can survive. I write extensively on both reform of the economy (e.g. here), and why we are seeing economic crisis (e.g. here) in my blog. You are welcome to visit.

The one certainty in all of this is that borrowing more money to lend to poorly performing banks and companies is not the answer. It was borrowing that created this mess, and more borrowing will just lead to further problems.

Excellent blog BTW ;)

Second only to Elaine Supkis's IMO.

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I own and run (with great difficulty) a small business, principally involved in manufacture.

I get f**k all in the way of tea and sympathy. If I **** up I will be reminded by countless observers that the U.K. is no longer manufacturing base and that I should re-examine my business model. No doubt developing ideas to export to China in order for them to be copied and ripped off by anyone talented enough to position themselves as middle men between greedy western customers and impoverished eastern slaves.

I am not complaining about the position I occupy, far from it. I enjoy doing what I do. I AM complaining about the digusting attitudes shown towards unfashionable businessmen like me compared to that demonstrated towards the thieving scum which makes up the failed moneylenders who have driven this country into the ground.

Enjoy it. We are about to become fashionable which may be worse.

Financial assistance should be considered for all, not just the likes of Jaguar and especially not the banks. Small businesses are the backbone of this country, I know I am biased but GB can only survive as a manufacturer. By the way I don't need assistance.

I think you are right - corporation tax breaks are an obvious move for the country's manufacturers.

It does depend on the type of manufacturing, but I personally believe that automation is the way to compete. That removes the cheap labour problem!

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