The City is a drain on our economy and society, argue researchers

[edamsavestheday]

potentially interesting read

The nub seems to be that a large financial sector does not provide wealth for the country because the power and influence the City has over government policy is used for its own self-interest at the expense of the rest of the economy and people.

It's certainly startling that there has been no reckoning for the financial crisis. The City helped to bring the world to its knees but got away without examination or reform and is back to business as usual.

We need more investment in industry

definitely. After the crisis, all the politicians talked about rebalancing the economy so financial services weren't so dominant but they've done sod-all about it.

The City, including Investment Banking, that through taxes help pay for so many public services since the 1970’s, has been responsible for much of the global economic growth/jobs since then.

Through the global capital markets, Governments fund deficits to keep services going, companies borrow then invest/create jobs and high street banks borrow to lend to us.

Without those investment banks and capital markets, there would have been no ‘emerging markets’, so that industry has undisputedly help ed lift hundreds of millions of people out of poverty.

Without those investment banks, who would make markets/provide liquidity in bonds, stocks, forex, commodities for investors, e.g our pension funds?

Without Lloyds Underwriters in London, who would insure the worlds risk?

The City tax take for the UK in 2007 was around £60 billion directly, closer to £100 billion including the businesses that service the City.

WHERE DID THAT MONEY GO, supporting fat government quangos costing tens of £billions or new UK homes? Ooops.

Manufacturing in the UK fell from 23% of our economy in 1997 to 12% in 2010, with 1 million MANUFACTURING jobs lost in Labour's first 7-years.

The economy IS BEING REBALANCED, seek stats and you will find, or ask me to try and provide some links, even though Europe our main trading partner is still down the growth/investment/jobs/consumption pan-hole.

If economies were funded by fat inefficient States, rather than a more balanced economy, we would have been the wealthiest country in Europe in 2010, rather than funding a £157 billion annual spending deficit.

Labour's answer to a 'balanced economy' (after 2010, as nothing in their 2010 manifesto to address it) is to threaten all small,medium and large businesses with state controls, an increased cost of doing business including more taxes and a Minimum Wage no longer in control of the Low Pay Commission - as Punch says, 'that's the way to do it'. NOT.

A UK government that relies so much on City profits/taxes to increase government spending they pronounce "the end of boom and bust", were clearly wrong, so what a shame not all governments ATTEMPT to balance the economy by GROWING businesses, rather sit back as the private sector shrinks and say how clever they are.

possibly the most obvious report ever. Financiers produce nothing, got away with theft and are a drain on us?

well, who knew?

Clearly not the report, as obviously COMPLETE ignorance on the basics of what the capital markets do - as proven by the worst economic recession in 100-years when they were unable to function for several months from end 2007.

IF the City did not facilitate government bond issuance/trading, how could the UK have run a £157 bil overspend in 2010, if not financed by the then Labour government issuing to investors (through the capital markets) government debt/bonds, know as Gilts?

How would any company grow from a start up in a bedroom, finance business growth, borrow through the bad times, and employ 100 to up to tens of thousands of employees if not through the financial market.

If the report can't get it's head around the basics of how the world has grown for decades, it shouldn't stretch itself and worry about the politics, especially over the last 50-years the UK Trade Unions have had far more influence - within UK industry through the 1970's being driven into the ground, and in the Public Sector from 1997 e.g. how can a Labour Party cut a fat inefficient quango'd State that increased by over 1 million employees, when their trade unions were financing the Labour Party's election campaign, and have them by the goolies.

Have you really not worked out why Labour would not, could not give their 'cut less, spend & tax more' details prior to the 2010 general election?

If they could not cut the governments pay roll/waste after 2010 and address the budget deficit, spending and TAXES had to go up for all, like the Fuel Duty and National Insurance just before the election.