MichaelCD - The Blog.

The thoughts of Michael Cadwallader. Coffee loving, history book reading, Cheshire man.

Sunday, May 28, 2006

Anatole Kaletsky

A couple of months ago, Anatole Kaletsky wrote an article, stating how the London property boom would enrich the economically struggling areas of the UK. He said:
Many Londoners on moderate incomes are now living in houses worth hundreds of thousands of pounds. As they sell or rent these houses to bankers and then move to cheaper parts of the country, they will suddenly enjoy undreamt-of financial freedom and will simultaneously achieve a redistribution of wealth between regions greater than by any past socialist government.

The growing significance of home ownership in redistributing the wealth accumulated in Britain by the world a’s financiers and bankers, will result in big political and social changes. Home ownership has already helped to turn Britain into a much more capitalist society, with deeper public support for private property and free markets, than anyone would have imagined 20 years ago. In the decades ahead, the country may move even further in this direction. Soon Britain may not be just a nation of shopkeepers but a nation of financiers and rentiers.

So how does he explain the fact, that the two poorest areas in the whole United Kingdom are Wales and Cornwall? Especially, given that both of these areas have massive numbers of holiday homes.

2 Comments:

At 9:42 am, Anonymous Anonymous said...

Wales problem is too much socialism, not too many holiday homes.

 
At 12:01 pm, Blogger Michaelcd said...

Well, yes there is a very socialist outlook from the Labour run Senedd, based on handouts from Europe. And yes, the precentage of government spending as a proportion of GDP (66%), is far higher than even Sweden or France. But the libertarian's view is also wrong.

For a start, Northern Ireland with a whopping 76 % of spending per GDP is actually higher than Wales in the list. And, the view that a "bloated state sector drives out the wealth creators, who can revitalise local economies", misses the point.

Wales' problem is globalism. Kaletsky's article rightly points out, that parts of the UK's economy have become 'moribund'. Whereas ,'the centre of global capital' London, has been racing ahead. In the last twenty years, Wales' economy based upon farming and manufacturing, has been squeezed to the pips. And, European money has been squandered on 'regeneration' of Cardiff, to attract tourism. Wealth creation, has been replaced by the economy of a third world country.

Why is Wales dying? It's a simple equation.

 

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