Lancashire TelegraphWe’ve all been hit in the pocket (From Lancashire Telegraph)

When news happens, text LT and your photos and videos to 80360. Or contact us by email or phone.

We’ve all been hit in the pocket

STRIKES! They scare the life out of me as the outcomes are so predictable.

Can one forget or forgive Arthur Scargill’s blind fanaticism which closed down our mining industry, put thousands out of work and brought devastation to the mining valleys in Wales?

And to what end? Oh yes, we now have to import coal!

Do those going on strike realise what it is they are asking?

They want the folk who are working in the private sector to actually contribute to their pensions; pensions whose value is many times more than the ones they are likely to get.

To carry out such ‘blackmail’ at a time when the country is in such a bad state, causing loss of valuable income, not to mention the inconvenience to the public at large, is selfish and greedy to say the least.

Public services have been overstaffed and feather bedded for far too long and now should be the time for them to show a little concern for the mess the country is in.

They should also accept the fact that all of us have been hit in the pocket one way or another.

I would, if I were them, be a little concerned that there are thousands of people out of work, eager to get a job.

Blame must mostly lie with over-enthusiastic union leaders who, by the way, are themselves assured of large pensions, using emotive rhetoric, trying to prove they are actually doing something and taking notice of their members.

And as the votes cast to strike are only about 40 per cent, is it legal?

Comments (16)

Please log in to enable comment sorting

3:10pm Tue 29 Nov 11

louderfasterlonger says...

It is the public sector workers who hold together the fabric of this country that are being victimised for a World Wide banking crisis and recession that is not of their making.
To harp back to the miner's strikes of yesteryear and compare the two is really quite patronising both to the readers of your column and in particular those hard-working public sector workers who are fighting to maintain a standard of living both now and in their twilight years.

To call them greedy and selfish is, quite simply CRASS, and does nothing to endear you to people who you ultimately rely on for your NHS Care, refuse collection etc...

Maggie Thatcher started her victimisation of the miners for the sole purpose of decimating the unions and selling our great industries to foreign investors.... cheap imports and stockpiling of coal from russia being her weapon of choice.

This was done in the name of Capitalism and Privatisation and started the ball rolling for her draconian anti-union laws.

I could carry on with my thoughts of the Thatcher era.... but I'm afraid you are now too far detached from the real world, enjoy your Cream Teas and meetings with Trippier, Margo.

And NO..... neither myself nor anyone in my immediate family is a public sector worker... just hard working individuals under the constant threat of redundany !
It is the public sector workers who hold together the fabric of this country that are being victimised for a World Wide banking crisis and recession that is not of their making. To harp back to the miner's strikes of yesteryear and compare the two is really quite patronising both to the readers of your column and in particular those hard-working public sector workers who are fighting to maintain a standard of living both now and in their twilight years. To call them greedy and selfish is, quite simply CRASS, and does nothing to endear you to people who you ultimately rely on for your NHS Care, refuse collection etc... Maggie Thatcher started her victimisation of the miners for the sole purpose of decimating the unions and selling our great industries to foreign investors.... cheap imports and stockpiling of coal from russia being her weapon of choice. This was done in the name of Capitalism and Privatisation and started the ball rolling for her draconian anti-union laws. I could carry on with my thoughts of the Thatcher era.... but I'm afraid you are now too far detached from the real world, enjoy your Cream Teas and meetings with Trippier, Margo. And NO..... neither myself nor anyone in my immediate family is a public sector worker... just hard working individuals under the constant threat of redundany ! louderfasterlonger
  • Score: 0

3:47pm Tue 29 Nov 11

Carlost says...

Margo is on form again re-writing history, getting it wrong, forming wrong conclusions about things she has limited knowledge of. Why! oh Why! ( is she given this space ). I was no fan of Scargill but he was actually trying to save the mining industry. It was in fact Margos hero Thatcher that ended our mining industry as well as selling off many of the country's other assets. She also squandered many years of our oil revenues to pay for the mass unemployment she created, but that's another story. Whatever Margo may think of Union leaders they are elected usually with a larger mandate than most of our MPs. There are now strict legal rules governing union procedures and calls for strike action.
Just because the private sector has bad pension provision shouldn't automatically mean everyone should have. Like Margo I don't agree with the strike and think the offer made in the current circumstances is fair but Margo's inferences and conclusions are typically naive and silly. A report today highlighted the fact that the average private pension is in fact higher than the average public sector pension. It's just that many more people are in public schemes than private ones that creates the tax burden. The other problem is when there is a recession industry can shrink, but schools, hospitals and many other social and civil services have to be maintained for usually increasing demand. As we all know it is a problem for any Government to get the tax and spend revenues to equate. Margo ends by praising the " Doctors and Nurses" who helped her, the very people ( public servants ) she was complaining about earlier. Make your mind up Margo.
Margo is on form again re-writing history, getting it wrong, forming wrong conclusions about things she has limited knowledge of. Why! oh Why! ( is she given this space ). I was no fan of Scargill but he was actually trying to save the mining industry. It was in fact Margos hero Thatcher that ended our mining industry as well as selling off many of the country's other assets. She also squandered many years of our oil revenues to pay for the mass unemployment she created, but that's another story. Whatever Margo may think of Union leaders they are elected usually with a larger mandate than most of our MPs. There are now strict legal rules governing union procedures and calls for strike action. Just because the private sector has bad pension provision shouldn't automatically mean everyone should have. Like Margo I don't agree with the strike and think the offer made in the current circumstances is fair but Margo's inferences and conclusions are typically naive and silly. A report today highlighted the fact that the average private pension is in fact higher than the average public sector pension. It's just that many more people are in public schemes than private ones that creates the tax burden. The other problem is when there is a recession industry can shrink, but schools, hospitals and many other social and civil services have to be maintained for usually increasing demand. As we all know it is a problem for any Government to get the tax and spend revenues to equate. Margo ends by praising the " Doctors and Nurses" who helped her, the very people ( public servants ) she was complaining about earlier. Make your mind up Margo. Carlost
  • Score: 0

7:07pm Tue 29 Nov 11

onlyonesimongarner says...

Mrs Grimshaw
If you did not have the benefit of private healthcare, would you be happy with NHS staff levels if you needed treatment.
Mrs Grimshaw If you did not have the benefit of private healthcare, would you be happy with NHS staff levels if you needed treatment. onlyonesimongarner
  • Score: 0

7:37pm Tue 29 Nov 11

brownbread says...

It was another Madge that killed the coal mining industry in this country.

People with very big fat bank accounts and deep pockets can take a financial hit and not really notice it. Just don't get yet another skiing holiday.

Low paid workers take a hit and there hungry, cold, desperate and dreading the bills and the bailiffs.

Ordinary workers and commoners don't get £1000's of profit through "a bit of luck and cheek" but I suppose women can hope and pray for the resurrgence of the topless barmaid trade as a desirable career move. Great future for all our daughters.

FTSE 100 Directors have seen a 49% increase to salary and rewards. Low-paid public-sector worker's take- home pay has fallen and cost of living increased.

However, the highest-paid Public Sector staff on £100,000 or more are extremely lucky and continue to have massive golden pensions and sickening salaries.

Margaret Thatcher made Ian MacGregor head of British Steel where he slashed 80,000 jobs during the 1980's. The company was the vanguard of the Thatcher government's programme of privatisation.

Then two years later in 1983 she moved MacGregor to British Coal. His instructions were simple, to extract revenge for the 1972 and 1974 miners' strikes, and to break Arthur Scargill who had just been elected leader of the miners' union.

MacGregor described what happened next as 'setting up the ducks'. MacGregor initially expected to beat the miners within a few weeks.

The National Union of Mineworkers, and Arthur Scargill were concerned at MacGregor's uncompromising business methods, branding MacGregor "the American butcher of British industry."

Wikipedia. Guardian newspaper.

Fair Pensions for All - that's only Fair.
It was another Madge that killed the coal mining industry in this country. People with very big fat bank accounts and deep pockets can take a financial hit and not really notice it. Just don't get yet another skiing holiday. Low paid workers take a hit and there hungry, cold, desperate and dreading the bills and the bailiffs. Ordinary workers and commoners don't get £1000's of profit through "a bit of luck and cheek" but I suppose women can hope and pray for the resurrgence of the topless barmaid trade as a desirable career move. Great future for all our daughters. FTSE 100 Directors have seen a 49% increase to salary and rewards. Low-paid public-sector worker's take- home pay has fallen and cost of living increased. However, the highest-paid Public Sector staff on £100,000 or more are extremely lucky and continue to have massive golden pensions and sickening salaries. Margaret Thatcher made Ian MacGregor head of British Steel where he slashed 80,000 jobs during the 1980's. The company was the vanguard of the Thatcher government's programme of privatisation. Then two years later in 1983 she moved MacGregor to British Coal. His instructions were simple, to extract revenge for the 1972 and 1974 miners' strikes, and to break Arthur Scargill who had just been elected leader of the miners' union. MacGregor described what happened next as 'setting up the ducks'. MacGregor initially expected to beat the miners within a few weeks. The National Union of Mineworkers, and Arthur Scargill were concerned at MacGregor's uncompromising business methods, branding MacGregor "the American butcher of British industry." Wikipedia. Guardian newspaper. Fair Pensions for All - that's only Fair. brownbread
  • Score: 0

8:29pm Tue 29 Nov 11

l m h jones says...

1. m thatcher had nothing to do with british coal?
2. teachers/nurses/care workers feather bedded? ever worked in a public service margot? ever used a public service?
1. m thatcher had nothing to do with british coal? 2. teachers/nurses/care workers feather bedded? ever worked in a public service margot? ever used a public service? l m h jones
  • Score: 0

9:52am Wed 30 Nov 11

jh372 says...

my heart sank when I read Margo's typically ill-informed column (strikes): thanks to above comments, my spirits have lifted!You have all put it so much better than I could have.
my heart sank when I read Margo's typically ill-informed column (strikes): thanks to above comments, my spirits have lifted!You have all put it so much better than I could have. jh372
  • Score: 0

11:22am Wed 30 Nov 11

jack daniels says...

did she have the b@lls to slag off the NHS staff to their faces as tey treated her?

Did she feck.

What a idiotic, two faced c0w she really is.

As jh372 says, well done to all for putting the facts straight!
did she have the b@lls to slag off the NHS staff to their faces as tey treated her? Did she feck. What a idiotic, two faced c0w she really is. As jh372 says, well done to all for putting the facts straight! jack daniels
  • Score: 0

12:11pm Wed 30 Nov 11

Joseph Yossarian says...

""It is the public sector workers who hold together the fabric of this country that are being victimised for a World Wide banking crisis and recession that is not of their making.""

Utter, complete, total nonsense.
""It is the public sector workers who hold together the fabric of this country that are being victimised for a World Wide banking crisis and recession that is not of their making."" Utter, complete, total nonsense. Joseph Yossarian
  • Score: 0

12:13pm Wed 30 Nov 11

Joseph Yossarian says...

""To call them greedy and selfish is, quite simply CRASS,

Completey spot-on there though...agree entirely.
""To call them greedy and selfish is, quite simply CRASS, Completey spot-on there though...agree entirely. Joseph Yossarian
  • Score: 0

12:16pm Wed 30 Nov 11

manyarecalled says...

Scargill and Thatcher are 2 nutcases that deserved each other . the rest of us didn't. this is ancient history .
Margo , we have 300 years of coal reserves left . why then are we importing coal now ?
private sector pensions used to be much better than public sector pensions. why aren't they better now ?
because when the banks and brokers gamble with our money , any losses are given to the Pension Funds , and any gains are moved elsewhere to attract bonuses. it's obvious !
are you really blaming hospital workers for that ?
Scargill and Thatcher are 2 nutcases that deserved each other . the rest of us didn't. this is ancient history . Margo , we have 300 years of coal reserves left . why then are we importing coal now ? private sector pensions used to be much better than public sector pensions. why aren't they better now ? because when the banks and brokers gamble with our money , any losses are given to the Pension Funds , and any gains are moved elsewhere to attract bonuses. it's obvious ! are you really blaming hospital workers for that ? manyarecalled
  • Score: 0

12:22pm Wed 30 Nov 11

Joseph Yossarian says...

Carlost wrote:
Margo is on form again re-writing history, getting it wrong, forming wrong conclusions about things she has limited knowledge of. Why! oh Why! ( is she given this space ). I was no fan of Scargill but he was actually trying to save the mining industry. It was in fact Margos hero Thatcher that ended our mining industry as well as selling off many of the country's other assets. She also squandered many years of our oil revenues to pay for the mass unemployment she created, but that's another story. Whatever Margo may think of Union leaders they are elected usually with a larger mandate than most of our MPs. There are now strict legal rules governing union procedures and calls for strike action. Just because the private sector has bad pension provision shouldn't automatically mean everyone should have. Like Margo I don't agree with the strike and think the offer made in the current circumstances is fair but Margo's inferences and conclusions are typically naive and silly. A report today highlighted the fact that the average private pension is in fact higher than the average public sector pension. It's just that many more people are in public schemes than private ones that creates the tax burden. The other problem is when there is a recession industry can shrink, but schools, hospitals and many other social and civil services have to be maintained for usually increasing demand. As we all know it is a problem for any Government to get the tax and spend revenues to equate. Margo ends by praising the " Doctors and Nurses" who helped her, the very people ( public servants ) she was complaining about earlier. Make your mind up Margo.
Don't forget though that Scargills stated aim was to bring down the government. He certainly wasn't a fan of democracy.

Speaking of which, the % of union members who voted seemed rather low......makes me question how much support there really is in the membership.

Speaking of which, have a look at the union annual reports and how much the union bosses pay themselves. (and compare with how much they spend on their memners)

They have learned a thing or two from the private sector it seems.

You make a number of good points and unions do still have a role in society.

But I cant help thinking that if the unions were fighting for something that everybody else has that their members don't have, then I would support them.

As it is they are fighting to have something that millions of us could never expect to get, so why should they get my support? What makes them better than me?

Don't get me wrong. I think Margo's diatribe this week more of a disgrace than usual. Linking the miners dispute to the current problems is pathetic, quite frankly.

But I think that the unions were too quick to srike and the govmnt are way to eager to try to score political points. The chancellor seems to act like we all read the daily mail. We don't. (FT.....)
[quote][p][bold]Carlost[/bold] wrote: Margo is on form again re-writing history, getting it wrong, forming wrong conclusions about things she has limited knowledge of. Why! oh Why! ( is she given this space ). I was no fan of Scargill but he was actually trying to save the mining industry. It was in fact Margos hero Thatcher that ended our mining industry as well as selling off many of the country's other assets. She also squandered many years of our oil revenues to pay for the mass unemployment she created, but that's another story. Whatever Margo may think of Union leaders they are elected usually with a larger mandate than most of our MPs. There are now strict legal rules governing union procedures and calls for strike action. Just because the private sector has bad pension provision shouldn't automatically mean everyone should have. Like Margo I don't agree with the strike and think the offer made in the current circumstances is fair but Margo's inferences and conclusions are typically naive and silly. A report today highlighted the fact that the average private pension is in fact higher than the average public sector pension. It's just that many more people are in public schemes than private ones that creates the tax burden. The other problem is when there is a recession industry can shrink, but schools, hospitals and many other social and civil services have to be maintained for usually increasing demand. As we all know it is a problem for any Government to get the tax and spend revenues to equate. Margo ends by praising the " Doctors and Nurses" who helped her, the very people ( public servants ) she was complaining about earlier. Make your mind up Margo.[/p][/quote]Don't forget though that Scargills stated aim was to bring down the government. He certainly wasn't a fan of democracy. Speaking of which, the % of union members who voted seemed rather low......makes me question how much support there really is in the membership. Speaking of which, have a look at the union annual reports and how much the union bosses pay themselves. (and compare with how much they spend on their memners) They have learned a thing or two from the private sector it seems. You make a number of good points and unions do still have a role in society. But I cant help thinking that if the unions were fighting for something that everybody else has that their members don't have, then I would support them. As it is they are fighting to have something that millions of us could never expect to get, so why should they get my support? What makes them better than me? Don't get me wrong. I think Margo's diatribe this week more of a disgrace than usual. Linking the miners dispute to the current problems is pathetic, quite frankly. But I think that the unions were too quick to srike and the govmnt are way to eager to try to score political points. The chancellor seems to act like we all read the daily mail. We don't. (FT.....) Joseph Yossarian
  • Score: 0

12:35pm Wed 30 Nov 11

manyarecalled says...

These bankers are criminals . why aren't they being prosecuted ?
they are not capitalists . capitalism is a free market with no monopolies and no insider trading. competition is supposed to drive down prices. if we look at the price of food , it is always going up , not down. this is because of the market being manipulated.
when someone takes YOUR money , and gambles it away , without asking you , do you care , Margo ?
These bankers are criminals . why aren't they being prosecuted ? they are not capitalists . capitalism is a free market with no monopolies and no insider trading. competition is supposed to drive down prices. if we look at the price of food , it is always going up , not down. this is because of the market being manipulated. when someone takes YOUR money , and gambles it away , without asking you , do you care , Margo ? manyarecalled
  • Score: 0

1:47pm Wed 30 Nov 11

CountyPalatine says...

Margot, Margot, Margot! If I'm thinking right you owned a few pubs round the barbory coast at one time? Anyway, far more than being just a good business woman, you're actually a very fine writer with great political views. Enjoyed reading your post.
Margot, Margot, Margot! If I'm thinking right you owned a few pubs round the barbory coast at one time? Anyway, far more than being just a good business woman, you're actually a very fine writer with great political views. Enjoyed reading your post. CountyPalatine
  • Score: 0

3:33pm Wed 30 Nov 11

Kevin, Colne says...

Joseph Yossarian and manyarecalled are two of the posters on here that I always read: they make some very valid points.

If I may add my two-penneth, one thing that is being over-looked here is the role played by the charges levied by the mainstream financial services industry on private pensions. In a low return environment these become positively disastrous, as the following figures show.

These figures are taken from 'Pillaged! How they are looting £413 million a day from your savings and pensions' by David Craig.

Saving £200 a month in a pension for 30 years with annual charges of 2.5%
produces:

At 2% annual growth the saver gets
-£5.825 (that's right minus), the pension company gets £27,000.

At 4% growth the saver has a pot of £17,962 and the pension company gets £33,359.

At 6% growth the pensioner gets a pot of £52,930 while the pension company gets £41,869.

In a Self-Invested Pension with annual costs of 0.5% the figures are:

2% growth: the saver gets a pot of £19,295, the financiers get £6,604.

At 4% growth the savers gets £55,786 and the financiers get £8,335.

At 6% growth the saver gets a pot of £100,400 and the financiers get £10,696.

Even at a rate of 0.5% the financiers are still grossly over-paid, in my opinion.

This is a major factor contributing to our present crisis. People should direct their anger at the mainstream a financial services industry that is syphoning off the wealth and leaving us impoverished.
Joseph Yossarian and manyarecalled are two of the posters on here that I always read: they make some very valid points. If I may add my two-penneth, one thing that is being over-looked here is the role played by the charges levied by the mainstream financial services industry on private pensions. In a low return environment these become positively disastrous, as the following figures show. These figures are taken from 'Pillaged! How they are looting £413 million a day from your savings and pensions' by David Craig. Saving £200 a month in a pension for 30 years with annual charges of 2.5% produces: At 2% annual growth the saver gets -£5.825 (that's right minus), the pension company gets £27,000. At 4% growth the saver has a pot of £17,962 and the pension company gets £33,359. At 6% growth the pensioner gets a pot of £52,930 while the pension company gets £41,869. In a Self-Invested Pension with annual costs of 0.5% the figures are: 2% growth: the saver gets a pot of £19,295, the financiers get £6,604. At 4% growth the savers gets £55,786 and the financiers get £8,335. At 6% growth the saver gets a pot of £100,400 and the financiers get £10,696. Even at a rate of 0.5% the financiers are still grossly over-paid, in my opinion. This is a major factor contributing to our present crisis. People should direct their anger at the mainstream a financial services industry that is syphoning off the wealth and leaving us impoverished. Kevin, Colne
  • Score: 0

3:50pm Wed 30 Nov 11

Joseph Yossarian says...

Kevin, Colne wrote:
Joseph Yossarian and manyarecalled are two of the posters on here that I always read: they make some very valid points. If I may add my two-penneth, one thing that is being over-looked here is the role played by the charges levied by the mainstream financial services industry on private pensions. In a low return environment these become positively disastrous, as the following figures show. These figures are taken from 'Pillaged! How they are looting £413 million a day from your savings and pensions' by David Craig. Saving £200 a month in a pension for 30 years with annual charges of 2.5% produces: At 2% annual growth the saver gets -£5.825 (that's right minus), the pension company gets £27,000. At 4% growth the saver has a pot of £17,962 and the pension company gets £33,359. At 6% growth the pensioner gets a pot of £52,930 while the pension company gets £41,869. In a Self-Invested Pension with annual costs of 0.5% the figures are: 2% growth: the saver gets a pot of £19,295, the financiers get £6,604. At 4% growth the savers gets £55,786 and the financiers get £8,335. At 6% growth the saver gets a pot of £100,400 and the financiers get £10,696. Even at a rate of 0.5% the financiers are still grossly over-paid, in my opinion. This is a major factor contributing to our present crisis. People should direct their anger at the mainstream a financial services industry that is syphoning off the wealth and leaving us impoverished.
Ta for the compliment.

You are bang-on the money about the costs. I think it'll be a future scandal.

Let's also not also forget Gordon Brown's raid on private pensions, which will end up costing millions of people tens of thousands of pounds.

(does not affect public sector pensions to my knowledge, I might be wrong about that)
[quote][p][bold]Kevin, Colne[/bold] wrote: Joseph Yossarian and manyarecalled are two of the posters on here that I always read: they make some very valid points. If I may add my two-penneth, one thing that is being over-looked here is the role played by the charges levied by the mainstream financial services industry on private pensions. In a low return environment these become positively disastrous, as the following figures show. These figures are taken from 'Pillaged! How they are looting £413 million a day from your savings and pensions' by David Craig. Saving £200 a month in a pension for 30 years with annual charges of 2.5% produces: At 2% annual growth the saver gets -£5.825 (that's right minus), the pension company gets £27,000. At 4% growth the saver has a pot of £17,962 and the pension company gets £33,359. At 6% growth the pensioner gets a pot of £52,930 while the pension company gets £41,869. In a Self-Invested Pension with annual costs of 0.5% the figures are: 2% growth: the saver gets a pot of £19,295, the financiers get £6,604. At 4% growth the savers gets £55,786 and the financiers get £8,335. At 6% growth the saver gets a pot of £100,400 and the financiers get £10,696. Even at a rate of 0.5% the financiers are still grossly over-paid, in my opinion. This is a major factor contributing to our present crisis. People should direct their anger at the mainstream a financial services industry that is syphoning off the wealth and leaving us impoverished.[/p][/quote]Ta for the compliment. You are bang-on the money about the costs. I think it'll be a future scandal. Let's also not also forget Gordon Brown's raid on private pensions, which will end up costing millions of people tens of thousands of pounds. (does not affect public sector pensions to my knowledge, I might be wrong about that) Joseph Yossarian
  • Score: 0

4:12pm Wed 30 Nov 11

Kevin, Colne says...

Quite. Gordon Brown did untold damage to private pensions. I think I can do no better than quote Robin Angus of Personal Assets Trust plc from 'Quarterlies: The 1990s And Beyond' (published in 2002). I know that Robin will not mind.

‘Even the resulting 20% off the annual dividend income accruing to pension funds (since pension funds could no longer reclaim Act ) sounds bearable. But it was much worse than that. Wise investors recognise that the value of equities is the discounted present value of future dividend stream from them. So when the Chancellor abolished the tax credit on dividends he stole from investors 20% of the value of the UK equity market.

When ACT tax credit was abolished, the market should have fallen by 20%. Instead, so few investors understood what had happened that it actually went up. Valuations, however, will always correct themselves over time – and that is what they have been doing over the last couple of years. Mr Brown’s theft of 20% of the value of the UK equity market does not account for all the damage to equity prices since the beginning of 2000. It does, however, account for a great big bleeding chunk of it, which is worth remembering as panic about pensions grips Britain’. (2002, p.66)

This was written by Robin in 2002 and sounds just as valid today as it did then.

For much of the last decade business has been creating wealth which has been to replace the 20% taken by Brown. This explains, in part, why the stock market indexes have gone nowhere.

The trade union movement, as usual, is barking up the wrong tree; but they enjoy barking so are best left to it.

The mainstream media, of course, are completely clueless on the matter.
Quite. Gordon Brown did untold damage to private pensions. I think I can do no better than quote Robin Angus of Personal Assets Trust plc from 'Quarterlies: The 1990s And Beyond' (published in 2002). I know that Robin will not mind. ‘Even the resulting 20% off the annual dividend income accruing to pension funds (since pension funds could no longer reclaim Act [as a result of Brown’s abolition of ACT]) sounds bearable. But it was much worse than that. Wise investors recognise that the value of equities is the discounted present value of future dividend stream from them. So when the Chancellor [Brown] abolished the tax credit on dividends he stole from investors 20% of the value of the UK equity market. When ACT tax credit was abolished, the market should have fallen by 20%. Instead, so few investors understood what had happened that it actually went up. Valuations, however, will always correct themselves over time – and that is what they have been doing over the last couple of years. Mr Brown’s theft of 20% of the value of the UK equity market does not account for all the damage to equity prices since the beginning of 2000. It does, however, account for a great big bleeding chunk of it, which is worth remembering as panic about pensions grips Britain’. (2002, p.66) This was written by Robin in 2002 and sounds just as valid today as it did then. For much of the last decade business has been creating wealth which has been to replace the 20% taken by Brown. This explains, in part, why the stock market indexes have gone nowhere. The trade union movement, as usual, is barking up the wrong tree; but they enjoy barking so are best left to it. The mainstream media, of course, are completely clueless on the matter. Kevin, Colne
  • Score: 0

Comments are closed on this article.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree