Christian Wolmar writes knowledgeably about the madcap race for railways in the nineteenth century; fortunes were won and lost, risks were high but rewards could be higher. Investors willingly put their money into these uncertain ventures in the full knowledge that it could either all be lost or they would become wealthy beyond desire. That's the thing about capitalism. If you don't want risk put your money into gilts or premium savings bonds. It's a matter of choice.
Tax avoidance is also a matter of choice. It's quite legal and proper - though not of course compulsory. Richard Branson, who is seeking taxpayer help in both Australia and the UK to keep Virgin Atlantic and Virgin Australia afloat, has been a tax resident in the British Virgin Islands now for many years, and has not paid tax in either the UK or Australia since 2006. He's done well - though his £3.5bn fortune is largely in the share-value of his holdings rather than cash.
It's quite legal to pare-down the assets of a struggling company. It's quite legal to lease nearly all your aircraft and even to mortgage your LHR landing slots to bondholders. Nothing illegal there at all.
That's the thing about capitalism. If those Virgin airlines go bust, the aircraft will still be there, the pilots, air and ground crews will still be there and passengers, even in reduced numbers, will still be there when we start flying again. The public won't lose out. The brand was quite cool in the '80s but then so were shoulder pads and Walkmans.
I can't think of a single reason, therefore, why UK taxpayers should pay £500m to preserve Richard Branson's wealth. Why should we? I don't begrudge Branson his fortune, but won't shed a tear if he loses it all. That's the thing about capitalism.
Deaths all-causes stats
The figures should be out today. After last week's 6k excess deaths, I predicted, if we're on the climb of the curve, that today could see 15k above the long-run average. I really do pray I'm wrong.
First indications are a reduction in daily fatalities.
ReplyDeleteIf Branson wants a bailout, he should ask his beloved EU for one. Not the British taxpayers, whose democracy he helped try to destroy.
ReplyDeleteOxford University's Prof Carl Heneghan maintains the UK hit the peak back in March a week before the lockdown.
ReplyDeleteOxford Uni bunch do not have Imperial Colleges track record of being consistently wrong on the catastrophic side..
https://www.dailymail.co.uk/news/article-8235979/UKs-coronavirus-crisis-peaked-lockdown-Expert-argues-draconian-measures-unnecessary.html
I see that Denmark have decreed that companies incorporated in tax havens will not qualify for coronavirus assistance.
ReplyDeleteNow, that's positive governance.
ReplyDeleteLive by the sword, die by the sword. Your investments can go up as well as down etc. The major part of 'irksome' is that any/all businesses that request (demand?) support are getting it from THE PEOPLE, not the Government and the same businesses will quite happily price gouge THE PEOPLE when the opportunity presents itself.
As for the daily figures.... how come .Gov/media can announce Covid-19 deaths EXACTLY but when it comes to the deaths of NHS health workers it's a case of 'it is THOUGHT that' x-number have died from Covid-19.
You'd think that with all the hype they're giving the health workers that they'd know PRECISELY who died and PRECISELY what of.....
What are they hiding from us under the 'it is THOUGHT that' headline?
The history of railways, land trade, extension of 'civilisation' etc. is fascinating, much as the history sea trade. Fortunes won and lost, fame and misery found; "my ship has come in", maybe months, maybe years after the initial risk.
ReplyDeleteThought deaths were well down on the graphs I saw yesterday. If there is no 2nd peak total death, despite the peak above the norm in weeks 14 to 16 will still be below those of 2014/15 for example (40K excess winter deaths etc) and several other years in the 90s and 00s (with, of course, the population several million lower.
Think it about 18000 up to 10th April??? So above your estimate Raedwald.
ReplyDeleteYep. That includes direct and indirect, diagnosed and undiagnosed. Suicide, depression, stress, untreated acute illnesses and so forth. But far fewer RTAs and murders, I suspect, and fewer cracked skulls from pub fights.
ReplyDeleteWe desperately need some reliable antibody stats.
...and fewer cracked skulls from pub fights.
ReplyDeleteYep, A&Es almost empty of the two where I know people. That said, domestic abuse probably waaay up, maybe suicides too?
Virgin Australia entered voluntary administration this morning. Aus will only preserve Qantas.
ReplyDeletePrior to this I read they were only flying one aircraft on one route per day - and at a loss.
If asked to chose, I'd pick Easy and Jet2 over Virgin in UK - far better long term potential.
It's a good point. We need to separate our feelings about Branson and Epstein Island, plus his own island, from the capitalist way in which this supposed progressive has operated.
ReplyDeleteIf he is capitalist, then so be it and he stands and falls by his own actions.
A whole bunch of people are giving us a perfect example of the worst of capitalism. Yes the risk reward side of speculation. To close off their contracts large numbers of oil futures traders had to pay others to take their crude oil. Large fortunes have been lost.
ReplyDeleteAnd hundreds of tankers are moored offshore (Fujairah UAE is a favourite) around the world filled to capacity with crude that speculators bought at a "bargain" when it was $30 a barrel.
Some contracts closed yesterday at minus $37 a barrel.
If I recall, all the US railroads had state or government funding. Land Grants and State aid.
ReplyDeleteAll except one, I think.
The granting of the land by the government, for free, plus state and government funding for the under developed middle states, allowed these high risk, transcontinental ventures to take place at all.
The trans Siberia railway of czar Nicholas was also funded by the government.
In the uk, we have HS2. Funded by the government. But any profits or assets given away to a lucky few?
To no great fanfare, HMG has withdrawn the Immigration bill from the parliamentary timetable. Not many people know that.
ReplyDelete