
Originally Posted by
KerrAvon
You do realise that the car buying thing is an analogy don't you? I used it to try to explain how a number of factors play into the making of a decision in a business or otherwise.
It would be ridiculous to take other costs out of the equation, because that is not how decisions are made. Or maybe that is how you do make decisions and you'd buy the more expensive car, because the paint element of the total price.
Widget man can't take other costs out of the equation, because he is running a business. He can't decide to forget that, say, the English Channel, means that he has to pay far more than his German rival in transport costs when selling into Europe (Ireland excepted).
I can't recall if you are a betting person, but I believe there is a concept called handicapping where some horses have to carry additional weight. Well, the UK is handicapped by it's location.
P.s. If you decided to buy you car in Germany, you'd pay foreign exchange costs and have to pay to get it back to the UK, which is kind of part of the point I'm making.
P.p.s. You didn't answer my question: which approach is more job creation friendly - upping the minimum wage and reducing corporation tax or upping them both?