In order for “Game Changers” to play out their role, the rules of the game need to be fair

Sir, Sir Samuel Brittan surprises us presenting the so simplistic view that “There is nothing wrong with the US economy that a measure of redistribution towards both the less well-paid and public services would not put right” “Yes, productivity matters – but it is not everything” August 23.

I would ask him, what about a little redistribution, in ‘the Home of the Brave’, of bank credit from the AAAristocracy to “The Risky”, to the medium and small businesses, the entrepreneurs and start-ups? Would that not be needed?

And, in order for that to happen, and I explain it again, banks must be required to hold the same amount of capital against loans to both groups, so that both groups stand an equal chance to deliver risk-adjusted rates of returns on bank equity.

While banks are allowed to hold less capital–equity, when lending to “The Infallible”, that is who they are going to lend to… and the real economy and the productivity will suffer as a consequence.

And that will happen no matter how much the US wants to capitalize on opportunities such as those presented by McKinsey in “Game Changers”. You see, in order for the “Game Changers” to play out their role, the rules of the game need to be fair.