Sal Paradise wrote:If the surplus money was spent on food or children's clothes would the VAT take go up or down? Could be that councils would take the opportunity to increase council tax? You have absolutely no idea where any surplus money would be spent.
Are you for real - cost deflation, this thread is all about energy increases would you say they are going up or down? Given most products require some energy in the process unit costs will rise that is before all the raw materials that also require energy to produce them!!
Investment doesn't mean capital investment - was that a bit over your head?if raw material/finished goods cost more then companies need to invest more in stock to service their business to the same level - if we accept the same level of return is required then company sales and profits will rise even if they sell the identical items to the previous year. Is that really such a difficult concept?
I would suggest both things happen in a well run company - costs lower as processes and technology improve and margins firm as a company's offering modifies to best suit its market.
A two cheap things you can do - loft insulation and cavity wall insulation both attractive government subsidies I got mine done for £80 hardly a large amount of money to stump up!! everyone should do it - how many actually do?
Perhaps if you lefties concentrated running your own life rather than telling everyone else's how to run theirs then you would not be so worried about your care in the future!! - no one deserves to have to care for you.
Good post.
