Can someone explain how the UK Government’s plan can possibly stimulate economic growth?
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In the old days, before there were various services to put your capital in low tax/asset accumulation portfolios, the rich would invest their money in businesses. The idea being if you give start ups and small businesses money they have more resources to grow and then pay you back with interest. This helps the lower class because business growth should bring about wage growth and opportunity growth. So to make the lower class rich give them better jobs, you give them better jobs by growing businesses. This caries risk because small businesses fail often but can also have high returns. Nowadays the richest prefer a safer way to store their money which can even be non-domestic.
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