By Conference of Socialist Economists
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Extra info for Capital & Class. - 1985 - Issue 26 issue 26
However, if the Government declared such imports permissible then the import system would be put into jeopardy . An even greater threat to the import control paradigm is the increase in CEC 26/SUMMER 85--D 49 Capital & Class 50 the number of `trojan-horse' imports . g . Nissan establishing a factory in Britain), which can give their owners complete access to home markets . These schemes would unquestionably make a considerable dent in the operations of a protectionist system . 15 We must also consider the effects of international financial integration on a thorough-going protectionist strategy .
This action would be followed by reflationary packages in first the intermediate economies, and then the smaller ones . This `locomotive operation, it is envisaged, would start off a cycle of growth . Alongside this reflationary package, the report argues for policies aimed at restructuring industry in the European Communities . These policies are necessary because capitalist economies, as presently structured, are thought to be incapable of meeting the need for growth, employment and rising living standards .
Hattersley cites a potential shortage of investment funds as a third major constraint . We discuss this under modernisation . Capacity and skill shortages are also mentioned, though not discussed in detail . 3. Specifically, institutions would lose the following privileges . Occupational pension funds, tax exemption and the employer's right to deduct contributions . Life assurance : right to issue qualifying policies . Charities : tax exemption . Investment trusts : special Capital Gains Tax (cGT) rate .