SocialismIsCentrist
19th June 2005, 01:10
Regionalisation of the economy, bringing it under command of the local government. It could be a rather good idea.
In a council owned corp, which will be earning money for council projects - the is quite a direct and pleasantly volatile situation that should keep those responsible for administration on their toes- do a bad job, the public will respond and kick them out.
the case for regionalisation comes about by taking an overall look at the problems with the local economy. In many of our clone towns we find that our towns have brand shops, pan regional, sometimes pan national stores! Crazy. Profit leeches out of the local economy.
Consider what happens when Walmart or an analogue opens a new store in some town offering cut priced goods.
phase 1) everybody is happy, new jobs, cheaper goods.
phase 2) people are a little disturbed. other diverse companies are out competed and shops close, in the end there is a null job gain.
phase 3) people are poorer because the regional economy has been depleted of wealth: Goods may be cheaper, but more of those profits flow out of the local economy into the coffers of those outside the local economy.
So after phase 3 of the natural progression of pan region/pan nation corporatisation, local economies have lost their dynamism. consumer choice is depleted, and because of a shrunk economy, a suppressed local wage.
--
But there is always a plan to get out of this. Local revolution. Councils should start taking a greater interest in the long term growth potential of their economies and seek to plug problems of wealth leakage 'abroad'.
This could be done by dramatically increasing rent. This will not affect prices in many towns. For example: In Wigan, my town, there are 3 supermarkets of considerable size. ASDA, Tesco, Sainburies - all within driving distance of the other as well as several Aldis, co-ops, etc.
A rightist fool might imediately say, OMG, rent puts up costs, which puts of prices, hurst the consumer suppressed the economy. Of course, in the real world, things dont follow rightist opinionated ramblings. In Wigans case, as well as many other clone towns of its class there is potential to modify rent on one store to force its profit margin to as near zero as possible such that it barely gains a + profit.
So what is done in such a scheme - the competive mechanism is this: if ASDA did put up prices, propergandising to local media about the council putting up rent - so it needs to cover costs.. well it will just loose out so bad to the stores that hadnt been targeted by rent hikes :)
so you see, you use capitalism to suck corporate profits by keeping everybody honest except one lucky competitor..
..in the end though, the council should force one competitor out of business and take over its operation with a council run alternative. with the councils command over rent, the councils should be able to manipulate the local economy to halt wealth leakage to other regions.
Wealth circulating within would generate opportunity for growth in areas the council is dissinterested in. the example of super stores is important because their takings are huge - therefore the loss to the region in their profits is significant.
In a council owned corp, which will be earning money for council projects - the is quite a direct and pleasantly volatile situation that should keep those responsible for administration on their toes- do a bad job, the public will respond and kick them out.
the case for regionalisation comes about by taking an overall look at the problems with the local economy. In many of our clone towns we find that our towns have brand shops, pan regional, sometimes pan national stores! Crazy. Profit leeches out of the local economy.
Consider what happens when Walmart or an analogue opens a new store in some town offering cut priced goods.
phase 1) everybody is happy, new jobs, cheaper goods.
phase 2) people are a little disturbed. other diverse companies are out competed and shops close, in the end there is a null job gain.
phase 3) people are poorer because the regional economy has been depleted of wealth: Goods may be cheaper, but more of those profits flow out of the local economy into the coffers of those outside the local economy.
So after phase 3 of the natural progression of pan region/pan nation corporatisation, local economies have lost their dynamism. consumer choice is depleted, and because of a shrunk economy, a suppressed local wage.
--
But there is always a plan to get out of this. Local revolution. Councils should start taking a greater interest in the long term growth potential of their economies and seek to plug problems of wealth leakage 'abroad'.
This could be done by dramatically increasing rent. This will not affect prices in many towns. For example: In Wigan, my town, there are 3 supermarkets of considerable size. ASDA, Tesco, Sainburies - all within driving distance of the other as well as several Aldis, co-ops, etc.
A rightist fool might imediately say, OMG, rent puts up costs, which puts of prices, hurst the consumer suppressed the economy. Of course, in the real world, things dont follow rightist opinionated ramblings. In Wigans case, as well as many other clone towns of its class there is potential to modify rent on one store to force its profit margin to as near zero as possible such that it barely gains a + profit.
So what is done in such a scheme - the competive mechanism is this: if ASDA did put up prices, propergandising to local media about the council putting up rent - so it needs to cover costs.. well it will just loose out so bad to the stores that hadnt been targeted by rent hikes :)
so you see, you use capitalism to suck corporate profits by keeping everybody honest except one lucky competitor..
..in the end though, the council should force one competitor out of business and take over its operation with a council run alternative. with the councils command over rent, the councils should be able to manipulate the local economy to halt wealth leakage to other regions.
Wealth circulating within would generate opportunity for growth in areas the council is dissinterested in. the example of super stores is important because their takings are huge - therefore the loss to the region in their profits is significant.