Reply to post: Re: And who will pay ?

Ex-Imagination Technologies boss tells UK Foreign Affairs Committee: Britain needs to stop overseas asset stripping

John Jennings

Re: And who will pay ?

Britain was built on Laissez fare.

See how successful it was and still is with everything from the development of steel to steam engine design to canals, from the building of textile industries to jet passenger planes and to advances in banking. Oh wait.... Some investors got stupendously rich, then stripped their industries internally - either directly by excess payouts to themselves with under investment in long term strategy or becoming distant from their business. That distance is only exacerbated by investment where the profit motive is to make returns on the capital - rather than long term development of the business.

We call the investment process the 'financial market' for a reason - it is a mechanism for investors whose product is shorter term financial return, rather than the long term health of the business. Destroying the business in the long term is of no consequence. Britain invented this in the 18th and 19th C, with the 'canal boom', the 'rail boom', etc.

in It does not take an international sale to destroy an internally developed industry, its a function of the financial market.

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