Mythbusting coronavirus is vital for life to go back to normal
As the government plans the timetable for getting Britain back to work, opinion polls continue to show strong support for the lockdown. An Opinium poll at the weekend is typical. Unsurprisingly, given the overwhelming scientific evidence on dangers associated with large gatherings, a massive 84 per cent of respondents thought stadiums should not be reopened […]
Coronavirus: Economists have a role to play in recovery
Lockdowns are starting to be eased in Europe. Austria, Denmark, Italy and Spain are all moving back towards normality. At some point during May, the UK will follow. We can reflect on what the government has got right and wrong so far in the opening phase of the pandemic. This is emphatically not to apportion […]
Coronavirus: A traffic light loosening gives the economy hope
The strategy of exiting from the lockdown is far too important to be left in the hands of health professionals. The government’s advisors have played very valuable roles in helping to avert the sort of crisis which overwhelmed the health services in Northern Italy. Many who were seriously ill with the virus died unnecessarily because […]
A lesson in cognitive dissonance for the Corbynites
Behavioural economics — which extends the ability of economics to explain the world — has become very fashionable. Richard Thaler, Nobel Prize winner for his work in this area, observed that most of the time, the rational choice model of standard economics works well. People gather information on the various alternatives open to them, and […]
For richer or for poorer? The economic case for marriage is worth remembering
An important piece of social news emerged last week. According to the Office for National Statistics, the divorce rate in 2018 fell to its lowest level for nearly 50 years. The overall trend is clear and well-established. The divorce rate rose steadily from the late 1950s, with sharp rises immediately following the Divorce Act of […]
Forget ‘reparations’, scrapping subsidies is the way to help get Wales back on its feet
Get ready to put your hands deep into your pockets for the boyos and girlos of the Welsh Valleys. Adam Price, the leader of Plaid Cymru, called last week for the UK to pay “reparations” to Wales for the crime of reducing the country to poverty. For centuries, Wales has (apparently) been stripped of its […]
What kind of person crosses the Nevada desert to investigate UFO conspiracies?
Area 51 is a mysterious place. Located deep in the Nevada desert, it is home to highly classified US military operations. Rumours abound that it harbours secrets about extraterrestrial life. In June, a podcaster released an interview with someone who claims to have studied flying saucers in Area 51. The video spread like wildfire on […]
Retailers beware, the online shopping revolution isn’t going anywhere
Another week, another retailer biting the dust. The baked potato specialist Spudulike has closed all 37 of its branches, with a loss of nearly 300 jobs. Shopping centres are undergoing a sudden and dramatic squeeze, with many retailers only able to stay in business if granted a dramatic rent reduction. Last week, Intu Properties, owners […]
Citizens’ assemblies would hand power to establishment experts
Citizens’ assemblies have become the height of fashion. The London borough of Camden is currently holding one on how to reduce carbon emissions in the area. Last month, Nicola Sturgeon announced plans to set one up to consider constitutional issues in Scotland. The Irish government’s one on abortion featured in the 2018 referendum on the […]
You can’t take the economics out of football
The appearance of Liverpool and Spurs in the Champions League final and Arsenal and Chelsea in the Europa Cup one has generated massive interest. But the official ticket prices for the games are surprisingly reasonable. Liverpool and Spurs have been offered 16,613 tickets each. Five per cent of these are expensive, at £513 each. A […]
The economics of tourist overload
I am in Edinburgh for a few days at the Festival, where even Jeremy Corbyn has appeared. Disappointingly, he was not playing the role of Carmela Soprano, the mafia don’s wife who is always present but never involved. Previously, I had been on Skye. Last month, I attended a conference in Venice. Edinburgh, Skye, Venice, […]
The intellectual imperialism of economics
At this time of year, most people are focused on leisure. The holiday you have just had, the one you are on now, or the one you are just about to go on. With exquisite timing, the 1 August issue of the top Journal of Economic Perspectives has a symposium of papers about work. The […]
Economics is doing just fine, thank you, without adopting psychology’s blunders
Criticisms of economics have abounded since the financial crisis. Even Nobel Prize winners like George Akerlof of Berkeley have got in on the act. A key demand is for economics to adopt a more recognisably human portrait of behaviour in its theories than the rational calculating machine of the textbooks. Psychology rather than pure economic […]
The misguided sugar tax is an ineffectual way to price the externalities of obesity
One of George Osborne’s last acts as chancellor in 2016 was to announce the so-called sugar tax. This came into force last week, in line with the original timetable. Drinks manufacturers are taxed according to the volume of sugar-sweetened beverages they produce or import. The tax increases with the sugar content. The aim is to […]
Altruism and information deficits: What snowstorms teach us about economics
While weather may not seem like a typical economics topic, there are always interesting aspects to behaviour in any context. Quite a number of drivers, for example, appear to have ignored notices of road closure. They drove on regardless, until becoming stuck in the snow. In Greater Manchester, which seems to have been the vortex […]
