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Headline

The wrong type of economic growth?

Comment

If you have some millions to invest, where are you going to put it? Into risky development of new products and technologies? Or into existing assets like land and property, where you know what you're getting, and roughly how much it will be worth next week. The same is true for quantitative easing money. It too flows mostly into existing assets, inflating the values of property and commodities. Bubble and bust will be the result. To invest well in manufacturing requires more specialist knowledge and research. Maybe it doesn't happen enough in the UK because the people in charge of the money here seldom have technical backgrounds? If so then we're trapped in a catch 22 situation. No wonder our industries are being bought up by foreign capital. If the government truly recognised the real source of wealth (as opposed to money) then they would tax speculation in order to direct capital towards productive industry where it belongs. My unproven suspicion is that the UK's speculation 'industry' is so good at appropriating the world's wealth that the government can't or won't disturb it. I think that the EU can see this: they will attempt to impose credit controls and/or fiscal union of some kind. And our bigwigs will pull us out and attempt to ride the gravy train for as long as they can, until we are excluded and then outcompeted by those nations that still make stuff.

Posted date

29 Jan 2014

Posted time

11:13 pm

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Digital Edition

The Engineer June Digi Issue

Poll

Labour leader Ed Miliband has said his party will introduce German-style 'technical degrees' if elected, drawing on advice from employers to provide a route to degree-level qualification for the less academically-inclined. What would be the effect of this for engineering?

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Europe's largest tidal array in the Pentand Firth off Orkney will eventually generate up to 86MW of power. What will it take for tidal energy to make an appreciable contribution to the UK's energy needs?

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