Is outsourcing the cause of RBS debacle?

[AtW]

What's your point though? It's still being productive in the UK.

It's good that Google setup subdidiary here and hires people, they are certainly a much better example of some other companies who'd just setup on paper.

The job of Govt however is to make sure home grown companies are strong because they are less likely to fook off overseas and hopefully will hire more local work force - voters who put Govt in power in the first place.

One of the things that Govt could do for example is to give extra dividend tax relief to shareholders of companies that is related to amount of PAYE income/NIC those companies pay. So if you invest into company that hires local people who pay tax then it's only right you benefit from it. Now that would be clever policy.

[Robinho]

The job of Govt however is to make sure home grown companies are strong

Why? If home grown businesses are tulip then they deserve to fail. If they aren't tulip then they won't fail.

And again you're not going to achieve that if you...

give UK businesses a competitive disadvantage because they have to employ more expensive contractors?

[AtW]

Why? If home grown businesses are tulip then they deserve to fail. If they aren't tulip then they won't fail.

A local business that might not be as good as foreign company but they pay local taxes, employ people can be more beneficial to Govt is a long run.

What you need to think about is how much Govt earns long term from taxes and not having to pay benefits from local businesses who'll keep money locally, where as importers just take money out of country - for example Google channels money from UK companies who pay for ads via Irish subsidiary so UK gets fook all VAT and no corp tax on that money.

[Robinho]

Businesses aren't there to be a cash cow for the government. They are there to provide a service to consumers.

The solution is to have low tax rates.

[AtW]

Businesses aren't there to be a cash cow for the government. They are there to provide a service to consumers.

Govt is elected by residents, hence it's the direct responsibility of Govt to ensure residents have good life - this means well paid jobs with enough tax revenue for Govt to pay pensions and invest into long term projects that no western business would dare.

[Robinho]

The electorate are ******* idiots though. They don't understand global economics. They just want a government to be seen to be doing something, even if that thing is ultimately making their lives worse.

[AtW]

They don't understand global economics.

That's why reading CUK General should be compulsory for all UK residents over 18

[Robinho]

If you're anything to go by, that's not going to work.

[AtW]

If you're anything to go by, that's not going to work.

I've got some Soviet teaching methods that virtually guarantee success

[BS1397]

but so far my offshore dev team has been really enthusiastic and keen to learn.

Well this is just the kind of enthusiasm that RBS & NatWest must have gone for, why let skill get in the way?