Wednesday, 4 November 2009

Govt minister leaves bitter taste in mouth!

To understand Mr Sugar's point you must first read Hayek's The Road to Serfdom. Hayek clearly explains that monopolies are bad but monopolies controlled by governments are the worst because any criticism of the monopoly is seen by Ministers as criticism of them.

The banks are all but state controlled monopolies - Ministers have made a big noise about the "need for banks to return lending to 2007 levels" but the banks aren't doing this because they, like Mr Sugar realise such lending was Theme-park folly (and that Mr Sugar is also right that many businesses are beyond help - thanks to this government's heavy handed business taxes).

As a result businesses complain that they aren't getting what was apparently promised, which makes the Ministers look bad (worse), so they send out Mr Spoonful of Sugar to help small businesses swallow some bitter medicine.

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