Innovate Britain

Certainly for the last 2-3 years I have seen the spiralling cost of foods in England.  With the Americans arguing about the best way not to default (http://www.bbc.co.uk/news/business-14142621) on their debt, it got me thinking what next for us?

Devaluing the pound or more Quantitative Easing would just boost the private banks margins again.  Which I think did do a job of making sure the house of cards didn't fall down.  However it was clearly another tax payer subsidy with no possibility of getting our money back.

Devaluing would improve exports and tourism whilst making imports more expensive and reducing the likelihood of us travelling abroad.  Problem there is that the UK is not geared up for exports any more, that train has sailed (if you like to mess up your metaphors).

http://theageofstupidity.blogspot.com/2009/09/british-pound-devaluation-delusions.html

What really needs to happen is government needs to be as small as possible and the population be entrepreneurial.

I have always thought that capitalism isn't great, but its better than anything else.  The reasons I see against capitalism are usually the reasons where capitalism is not being correctly used.  Quantitative Easing is such an abuse, the market should have collapsed and reset itself.  Like ripping off a plaster you either do it fast or slow, we took the slow route.

What should happen now, is the UK should have the strong pound and we live with that.  However we then innovate our way out of the problem (Japan and German did it in the 70's and 80's).  Create new ideas, products and ways of doing things that means other countries have to pay us a lot for.  We need to stop looking for central banks to solve the problem.  We should be asking our government to slim down its spending and red tape.

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