Here is probably the clearest statement advocating a Windfall tax upon Corporate bonuses, and they make it sound good, but I do not believe there will be much improvement in the system without some real check on the quality of Work activity. I have proposed a delayed bonus system, where the labor has been verified against Risk hazards by quality fulfillment; coupled with a bonus reduction if the bonus has not served its purpose of retaining the skilled employment. The Job creation aspect is somewhat doubtful in the face of reduced Consumption by households, though this sounds excellent, it probably will not work out on Paper and Fact. Another two years of household savings would reintroduce the old Consumption pattern with about half of the Interest payments; if the trends of cheap Interest rates and lower Debt levels were maintained. I favor increased taxation, though only upon currently unexercised business structures rather than personal Income; a fact which places me at odds with most of the blogging world.
Tim Hartford outlines his own view of How to achieve economic success, as well as the view of Sir Partha Dasgupta. I have always taken the view that it is the uniformity of Government rule which brings prosperity. I have never witnessed any society of Government corruption, where payola was the common practice, which ever succeeded anywhere; except making the Rich richer, and the Poor poorer. It is this definition of Property rights by position that destroys prosperity. Tim imagines that Rich countries cannot grow Poorer, yet he denies history: the fall of Rome, the decline of France, even the decline in his own country prior to the Thatcher reforms. I remember the famous Reagan, who faced adverse economic circumstances, and ended by raising more equitable taxation. We need better tax policies in the States, and probably they need better tax policies in Britain; though it remains doubtful that a speciality tax like the Windfall tax is the Answer.
I like this little Post, because it shows the fallacy of Trade expectations. Imports constitute a major part of our economy, a share that is relatively hard to reduce. Exports make a relatively slight part of our economy, one which finds itself in easy decline anytime alternate suppliers of Export product present a cheaper, more viable option. The desire for Dollar decline actually places greater stress on our economy, as any relieved by increased Imports. Some people cannot understand that Free Trade policies are favored by Exporters, but Importers can clarify problems associated with these problems. It does not help when policy creates more problems than it resolves. lgl