It was George Orwell who coined the phrase “Four legs good, two legs bad” back in Animal Farm days. Who would have thought that the new Labour leader (and winner of the Ray Romano look-a-like competition) “Red” Ed Miliband would use that as the basis for his economic policy?
You see Red Ed thinks that there are “good” companies and “bad” companies. The good guys are “genuine” wealth creators – who, he will say, should be championed and encouraged – and the bad guys are the “asset-stripping predators”.
Just a few points on this;
1. Who decides if a company falls into the good or bad category?
2. What criteria apply in evaluating these companies for what could be punitive categorisation?
3. How can a different tax regime be applied to one group of companies and not to another? What is “good” companies go bad? Or vice versa?
For someone with such a strict Marxist background as Miliband, it may seem natural to want to categorise private business and then attach punitive taxation to those deemed unworthy. However given his total failure to get to grips with the bloated unproductive State sector, I suppose it is natural that he focuses on the sector that creates wealth as the real enemy.