For me this is a collection of short term measures that helps them start out, and one expensive 10 year measure that would provide great stimulus for it's duration. But no lasting solution because it does not address the problem we have and would in-fact compound it.
John Redwood (who I feel is a criminal by the way , but a clever chap who knows exactly why we are in the shape we are) wrote a very good piece recently on why America is in such bad shape.
It's is here.
Basically it comes from importing everything and helping or even encouraging local people to buy even more of it with debt. John makes his main living out of advising people where and how to invest so keeping it like this and knowing when it will change is good for business. Maddeningly inappropriate, dark ages insane legal, but good for him.
Anyway. Enough Tory bashing Kaz. They are all the same. That's why the public are so disengaged.
Compound 2
That with the fact that the bonus hunting @ankers lent out 5 times each persons salary and finders fee hunting IFA's doctored applications to whatever other income streams they could dream up. People could borrow so much that they would have nothing to spend . . and had to jump on the band wagon because property boomed. Sitting on a home would make you richer than working. Others with more money available just bought to let and sat on several.
= Poor disposable income for majority of those who purchased homes after 2000.
= Sensible aspirational young (#woky) need to save more deposit.
= More men and woman in family home must work.
= Less families in town midweek and those who are likely on a budget.
Compound 3
A town centre needs people to spend money there. But many of us do nothing of intrinsic value, and our resources do not replenish fast enough us to work them into value if we did. Most of our jobs are trying to get people to by stuff they don't need (with bank debt), make things that help those people who are trying to sell things the debt ridden do not need do not need, or do the accounts. Too few do anything of value. Too much physical value is imported . . too much money is leaving the country. Too much is just moving around.
= Little actual new value being created. = Less wealth being created.
= Money just moving around shrunk by tax from active economy and partially redistributed in the form of debt thanks to deficit.
Compound 4.
The property bubble burst. Couples on £22k each with 5% equity on flats worth, (sorry not worth, they only cost £60k to build) that cost them £180k, found themselves in properties worth £160k. They now have negative equity. Probably better will go bankrupt. They already had a mortgage that left them nothing left to spend in town.
Fractional reserve banking mean't that banks had lent out 5 times as much money as they had deposited but houses were 30% overvalued. The country was literally bankrupt if the property prices were allowed to be what they should. Build cost plus a bit of profit.
= No back up confidence. Even more likely to save just to pay off mortgage debt.
= Banks all bankrupt on property collapse.
Compound 5.
So we reduce interest rate to 0.5%. Me being a Mr clever pants saw it coming and have a lifetime tracker, 2 actually because I am a landlord but one who will campaign to give all tenants the Right2Buy so their kids can have a nest egg too.
Now nanny and Grandad get nothing from their savings, the pension has been going up by 0.8% for the last 5 years not real inflation. Nan and Granddad buy food, energy and council tax, not gadgets. Their Grand kids in the £180k house have just enough to stay afloat, but no hope for starting a family. Good thing too because they are so stressed about loosing their job and home they would struggle as parents. Grandparent's seeing their family stall offer savings to invest in meeting Gread Grandkids before they die.
= Pensioners have less to spend, what they might they are saving for both themselves and grandkids.
= Pensioners are the only reliable daytime offline shoppers.
Compound 6.
The internet, better international management, large companies started moving office workers and customer service abroad to developing countries where working 13 hours / day, six days per week, with no welfare state for £6k is legal.
= Very little low basic labour work, and what there is will not even pay the bills.
= everyone must gain skills in things can make money here. e.g. IT and moving money.
= Young academic aspirational training harder than all the rest. Less time to go shopping. Chores for weekend.
= Less academic young just want to get by and not give 110% for a boxroom have absolutely no hope and no money to spend, more likely to look for trouble and drain resources.
Compound 7
Joining the EU. Ever met anyone who was happy where they are. Yes. Wokingham . .for now. Everyone else seems to want to move abroad, and guess what, and some foreigners are the same and some of them want to move here. The grass is always greener. They work here for enough to share a box room . . and so must we. They have no hope of buying a home here and buy land back home, guess what that does to house prices there for those who stayed?
International relationships are formed so not only do the workers go home for Christmas and spend there but international families every year for life. I married a Moroccan and spend about 4 months disposable income seeing family abroad at Christmas, not in town.
= Lower local wages.
= Less disposable income out of what is earned due to high cost Christmas / birthday etc.
= Increased travel = pollution.
= Increased old age care costs back wherever family originated.
Compound 8.
Inspirational young leave home areas for where their are established opportunities Leaving many pensioners with no local family to support them. No innovators to create opportunities Adding to the welfare burden there.
= Increased tax burden to subsadise poor areas.
= Top tallent (who are the only people getting paid well) congregate one area. Making demand for housing very high.
Grim is it not.
Now Jonny Redwood knows all to well where the fixes lie. But I think he and his cronies so busy making money out of having the best information on what things they might do, they don't have time to care.
Below are a list of what Tory donors are thinking about with their spare cash.
Invest in Asia, buy land and rock bottom in Greece and Portugal or even stretches of Africa (where energy will come from when the oil runs out).
We have our own currency and they need other currency as they export their ill gotten gains. Maintain relations with naieve Middle East oil princes so can sell assets to them, sell him weapons to keep the poor Arabs from claiming sovereignty of their land creating their own resource companies. Oh and do it all in a tax haven wrapped in a trust so future generations can live of the cream of the peasants labour but daft spoilt junky kids are unable to blow the capital or loose any of it in one of many divorces.
ched the point where many people are not having their families. It's not a game any more.
Anyone can pick flaws though. Here is how I would fix it.
In answer to the actual question
How do we get people to spend in the town centre.
In regards to the suggestion of a town regeneration investing 100s of millions in upgrading everything in a middle of an IT Mecca that may well not be an IT Mecca in 50 years is unsustainable?
I would not do it yet. It would hide the problems for another ten years and probably compound the damage. We must do it with local economy money. Not by private investors who must make such a huge margin for both their profit and to pay huge local contributions as well. Definitely not with a secret contract with no breakdown of costs to add corruption to the bill.
Rents and rates have to drop. that mean greedy landlords have to have empty shops for a while or we have compulsory purchases. I prefer a #Right2Buy law.
Rents and rates have to drop. that mean greedy landlords have to have empty shops for a while or we have compulsory purchases. I prefer a #Right2Buy law.
If you do want people to use the town rather than online then more events is all it can offer. Do them smaller, cheaper and attractive to different niches. St Patrick soon. Lets hear some bag pipes in Wokingham and have the kids learn some sword dancing. The libraries have worked this out and so there are already experienced civil servants to do the planning.
If you are fed up of signing petitions against the latest evils pushed through by corporate interests in politics put in your calendar 28th August to visit www.GoodEgg.org.uk.
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