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October 12, 2010


Leigh Caldwell

I did think this comment from Green was a strange one.

If the government wants to best use its AAA rating, it should pay suppliers EARLY, not late.

If it pays suppliers later, they will have to finance the credit themselves, and (in a competitive market) charge the cost to the taxpayer. Since companies' cost of credit is higher than the government's, this will cost the public more than if the bills were paid on time.


Which businesses? I imagine Green's Topshop don't get an awful lot of government contracts.

Potentially, Topshop competes with the rest of the private sector for capital, so this could be (slightly) in his interest.

In practice, he could just be doing it to increase his reputation for being an efficient manager. (And therefore increase the remuneration he can demand).


Good point - the companies to be screwed over are those in construction and services which generally have very little to do with retail.

And although Green himself doesn't care to pay any taxes lesser bourgeois who still do would much rather pay less even if that hurts some other capitalist's profits.

After all we are talking about a class who feel no collective loyalties at all.


The conclusion of this post will not hold if the current excess profits are being dissipated via rent-seeking behaviour. In that case, cutting rents at the source can lead to lower taxes and thus improve profits.

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