Comments on: Can Davos avoid sloppy thinking?

By: Lola

Lola — Thu, 29 Jan 2009 22:17:12 +0000

The water companies aren’t letting the system fall into disrepair. They have such a huge legacy of neglect (whilst the utility was in public ownership) to put right that it just takes time. They don’t have the people to do it quicker and they sure cannot spend the money well if they haven’t got those. Furthermore they are subject to constant interference from various quangos that divert resources from repair to politically advantageous projects. For example, in my area the water co has been forced to install meters in everyones house. They don’t want to do this. They want to spend the money on leak fixing but they can’t.

I agree that the monopoly bit is difficult to resolve, but I have no faith at all in government bureaucracies.

I should point out that I spend half my career in civil engineering and I’ve watched as politicians and gov’t bureaucrats have cocked things up time after time after time.

By: ManicBeancounter

ManicBeancounter — Thu, 29 Jan 2009 21:17:53 +0000

The need for financial regulation that is “smarter” begs the question as whether anyone, or any group are smart enough for the position. Most opinion did not see this crisis coming, and most commentators are divided as to what is to be done.
Future regulation is likely to be tougher, more onerous but not smarter. It will stifle risk-taking and create costs, much like the new accountancy rules post Enron. In trying to prevent a future crash, recovery will be delayed and long-term global growth undermined.
However, the box-ticking mentality will not prevent future crashes, as there will always be those who will cheer on a boom, and not want to put the brakes on.

By: chris southern

chris southern — Thu, 29 Jan 2009 13:35:37 +0000

I totaly agree about income tax.

In reagards to the water, i didn’t say charge nothing.
The ever increasing prices above inflation at the moment though are ridiculous and will continue to be so whilst private companies are allowed to let the system fall into disrepair and continue to find ways to charge customers for the waste caused.
Any fines imposed through lies over their standards (as the higher the standards the more they can charge, hence the lies) are simply passed on to the customers.
Extra regulations won’t work, as has already been seen.
The manopoly of the water companies needs to be broken (and the already govermental proposed changes will only add to the cost, hence my call for nationalisation of the water companies)

and yes, nationalisation only works when the goverment keeps the management to a minimum, which is the problem we currently have with the current goverment as it creates more tiers of management with everything it can get it’s hands on.

By: Stuart Fairney

Stuart Fairney — Thu, 29 Jan 2009 06:51:39 +0000

“Looks like Zac is winning, ‘Vote Tory and travel by donkey’ ”

Soundbite of the week award. You perhaps should add, travel by donkey unless you are important and named Zac. However, I imagine it would be jolly convenient to have the roads cleared of the rest of us. My contribution to the sounbite contest

“If you want sensible transport policy, DON’T talk to Frank”

(Yes, that is Zac’s actual name http://en.wikipedia.org/wiki/Zac_Goldsmith)

By: Lola

Lola — Wed, 28 Jan 2009 23:05:39 +0000

Well, it depends what you mean by punished. Fred Goodwin’s reputation has been ruined forever. Sure he’s got money, but reputation is everything.

By: Lola

Lola — Wed, 28 Jan 2009 23:04:18 +0000

Water is not free. It takes a great deal of engineering, biology and capital investment to get it to you. Getting clean water in and foul water out of homes has probably saved more lives than doctors. So pay engineers more than doctors. Which brings me to the point of price. It’s a signal. It indicates to us what things are compratively worth to us. Providing free water would remove the price signal and no-one would value it. No investment would be made and the quality and security of supply would decline as bureaucrats argued over how to share it out and pay for it rationing would ensue. And you have a choice of supply. You can get it piped in or you can get it delivered by tanker or you can buy it by the bottle from supermarkets. So charging for it is not a tax. Income tax is a more of a charge on life. It taxes your life. You exchange time for wages QED income tax takes away your time; your life.

By: Derek

Derek — Wed, 28 Jan 2009 22:56:04 +0000

I wish Dr Who would finish off Davos once and for all.

By: Acorn

Acorn — Wed, 28 Jan 2009 19:25:55 +0000

Rob, have a look at:-

http://mises.org/story/3300

By: Mal Dodd

Mal Dodd — Wed, 28 Jan 2009 19:03:57 +0000

The global financial crisis has had “a rather big impact” on China’s economy, the country’s Premier Wen Jiabao said in a major World Economic Forum speech.

He added that China’s economy was in good shape “on the whole”.

Mr Wen said that among the reasons behind the current global downturn were “inappropriate macro economic policies in some economies, characterised by [a] low savings rate and high consumption”.

Now I wonder which country has headed the list of Low savings rates and high consumption in the last ten years?

Step forward Mr Brown.

By: mikestallard

mikestallard — Wed, 28 Jan 2009 16:59:05 +0000

I completely see the point of high-ups visiting each other for a quiet chat man to, as it were, man.
I also see the point of allies in war making sensible plans for the future.
Now we have the UN, the IMF, the EU, the G(10?)8, NATO, the UN Security Council, all with their round the room tables, lots of flowers and little flags and serious looking men and women all greeting each other warmly – perhaps too warmly – and staying in their lovely holiday venues at our expense.
Nice work if you can get it.
But – pur-lees – no more about suffering Africans, not emitting carbons with unnecessary flights or global warming!

PS: the Second World War was 70 years ago now. The Cold War ended twenty years ago now. Many of the above institutions date back to then. So do I – and I am at least feeling my age!