I have recently made a few blog posts about money and how to think about it. About how it is important to have assets somewhere to help us live. Jeremy Corbyn might read my posts and say “this reeks of capitalism, **k the rich!”.

All I’m trying to do is explain how the world works and unfortunately though, there is no other way of working out who gets paid what. We can’t all be equal. We don’t all want the same responsibility. We don’t all have the same thoughts and ideas. At the same time open market forces can be savage, how are footballers worth so much when I can go and do the same (kick a football against a wall) as them??? They certainly aren’t role models or better people than any of the rest of us. But I digress.

Businesses make money by selling products or services. The money they make is a measure for the value of the product or service they provide. I don’t know of any other way of working. For socialism to work, it needs to have some way of promoting business so we can afford the social side of it, because we don’t want to get rid of our mobile phones, flat screen TV’s etc etc and live like Russia did in the 70’s and 80’s, hardly able to afford food and medicine.

What I am seeing though in the news every day, is that most if not all politicians are clueless when it comes to actually understanding how things work, rather they just try to pander to public opinion and look good in the moment (if possible). They don’t understand that asset stripping is bad (even assuming they aren’t the one doing the stripping and getting a lifetimes worth of money in the bank from it), because without assets, we are less able to make money, and are poorer as a result.

The country overall, is dependant on foreign people giving us loans. So we are like the home owner in my previous post on Is a House an Asset or a Liability? with a really big house struggling to pay the interest. This should be the other way round and its scandalous that its been allowed to get as bad as this. The government has no money as a result without massive borrowing which it almost can’t afford to repay without more borrowing.

While there are no easy answers, the only answer in my opinion rather than asset strip, to asset build so that we are in a better position to make things that people want to buy from us and make money as a result. Lots of businesses are now owned by foreigners – because what are they doing? Asset building. The sooner the politicians understand this, the better we will be.

So no more trying to hug Europe, in the hope they might take pity on us and give us work, this is like trying to hug your neighbours wife in the hope you might get a **** when her husband isn’t looking. Instead, don’t sell off steel and other businesses, because its clear that if the Chinese had a monopoly on steel prices would go up and we would be doubly poor. Do everything you can to build up assets. Building up assets is far better than paying interest on loans because eventually we will be truly richer. Reduce taxes, including corporation tax, for UK based (or owned) businesses so our businesses can compete with others in the rest of the world (as an aside I don’t believe the tax burden can be reduced on the steel industry because Europe won’t let us).

We have been in decline for the last 50 years because nobody has done any of this, and eventually, with no money left in the country, but with people still wanting us to behave like a first world country with all the costs that go with it, hopefully nobody can hide behind these destructive policies any more.

This is good advice for individuals as well but especially for the country.