Why have low interest rates in the UK not resulted in economic growth?

there operational reason , true economic policy reason.

operationally, banks not willing lend @ low rates small , medium-sized businesses. form sector employs on 80 per cent of working population. loan rates high ever such businesses. low-rate commercial loans available go big corporations , multinationals; make big profits distributed shareholders , top management.

in terms of economic policy, monetary policy has never been shown work properly. recovery in economy requires greater spending power in hands of consuming public. means households. solution proper fiscal policy reduces taxes [both stated , hidden taxes] great mass of buyers able go out there , food, clothes, electrical goods, home improvements, luxuries, sports goods, travel , accommodation , on. activities make economy successful. monetary policy alone can never because doesn't put purchasing-power hands of purchasing public. monetary policy merely affects profitability of financial sector and, putting bluntly, not productive sector.

suppose there conspiratorial reason: governing classes [mps of parties, bankers , stockbrokers, big investors, trade union pension funds, landed gentry, aristocracy , emerging richest class of "celebratocracy"] have found economic policy raises wealth in bad times. rest of country going broke governing classes getting richer every day. monetary policy suits purposes perfectly, continue. taxing rich put spending power hands of masses not going happen governmental , financial system.

Social Science Economics Next