Richard Murphy
Inhumanity to others is happening here in the UK right now, disguised as monetary policy. https://www.taxresearch.org.uk/Blog/2023/11/17/inhumanity-to-others-is-happening-here-in-the-uk-right-now-disguised-as-monetary-policy/. Economists are worried that consumer spending fell last month. They should be much worried about the inhumane stress that interest rate rises are causing for millions in the UK - and which can only get worse whilst the Bank of England continues its cruel interest rate policies that are intended to inflict pain and misery and are succeeding in doing so.
The stock market is failing according to the CBI. So why don’t we just let it go?

I posted this on Twitter this morning: https://twitter.com/RichardJMurphy/status/1942861045426516103 My point is serious. The CBI is saying that the situation with regard to the UK stock exchange is getting desperate, because it is losing out to overseas markets and not attracting sufficient business. The question that needs to be asked is, why is that?...

Funding the Future
Nov 17, 2023 at 7:56amWeb
Show threadEpistatacadamNov 17, 2023
@RichardJMurphy @ChrisMayLA6
On a side note a question to those who understand finance and economics. I'm puzzled why encouraging ISA holders to speculate on the share price of UK companies will encourage British manufacturing or supply companies. I am aware many of the companies that perform well, seem to buy back their shares, to inflate their price, so reducing cash surplus to invest, whilst also boosting executive bonuses.
Financial markets break economies it seems, not grow them. See 2008!
Show threadEmeritus Prof Christopher MayNov 17, 2023

@epistatacadam @RichardJMurphy

yes, the financialised UK economy only seems to see economics as reflecting financial sector priorities.

That said, the investment in firms is not the problem as such, but the behaviour of executives whose wages/bonuses are tied to the share price. As you rightly note in many firms its a perverse incentive that undermines long-term views of strategic direction & in the end robs investors of potential value generation...

Show threadEpistatacadamNov 17, 2023
@ChrisMayLA6 @RichardJMurphy thanks perhaps a new government could ban exec bonuses linked to share price? My preference would be to ban bonuses completely. You're hired to do a job at an agreed price, why because other employees performed well to b support you do you deserve a bonus? I'm happy with a profit share to employees, though I'd prefer it to be spilt equally amongst all, so lowest paid get proportionally more. But that's pie in the sky, probably. I think it would enhance productivity.