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Friday, 1 April 2016

Some Economics Surrounding Govt inaction on Steel Industry


Dig deeper. The reason Tory govt veto'd higher premium on Chinese Steel... is the key word PROTECTIONISM. and monetarists Hate Protectionism. Higher duty on Chinese steel wouldve part way protected british steel industry. America for instance have over a 100%+ (over 100%) tarriff on it. Ours is 6%. Anyway moving on...
For protectionism is seen by them as state interference, and commonly referred to as state intervention. Not part of their core beliefs. Not in UK Monetarism, anyway. .... protectionism is seen as a tool of stagnation... it isnt, its a tool of anti decay ( a preventative tool) from market interactions.
See where that heads? "The Market rules" . It shouldnt always.
Yet tory voters dont all see this TORY view, yet still vote tory? "why arent we protecting British Stuff" ad infinituum.. but see the key concept here with the steel thing is Protectionism is seen BAD by monetarist core theory of UK Conservative Party> Q.E.D "We'll help those affected" rather than ..*we will protect this industry from unfair competition by taxation route and take a long term view of the benefit of this industry" See? (Tax is Fiscal, not Monetary)
Now you see the difficulty. Tory immutability on Monetarism. To swing them they must be under serious OMG threats to gain minor concessions to their driven belief in the Markets.
This is my view on this. Hope it helps.

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