This Christmas, let’s all reconsider how we think about innovation, jobs and wages
There is still time to have a last minute Christmas present delivered. No, of course not by Royal Mail; but one of its enthusiastic competitors will do the job. Given the impact which technology in general and the internet in particular has had on postal service, it is hard to imagine a more pointless strike […]
If we concede to the unions, Britain will find itself in a dizzying wage-price spiral
A wage price spiral. We have not experienced one for so long that for most people the phrase might just as well be written in the Old English of a thousand years ago. It is, well, sort of comprehensible but only just. But such spirals can take hold with terrifying swiftness. Towards the end of […]
If you can build a football team, you can advance the fortunes of poor nations
In Qatar, there has been a storm over its treatment of women, the LGBT community, and other minorities. But it has also, in another way, been the most egalitarian World Cup. What used to be called “upsets”, with notionally weaker teams beating their alleged superiors have almost become the norm. So, Cameroon beat Brazil, Tunisia […]
In low income parts of the UK, boosting productivity is a question of competition
Productivity is a puzzle with many different layers. When it becomes a mainstay in political speeches, it is rarely for a good reason. Most of the recent focus is on why it has been so slow, in the overall economy, for the last decade or so. In the 1990s, productivity in G7 countries rose at […]
Housing Associations have no accountability and a 2-year-old has paid the price
The tragic death of Awaab Ishak, the two-year-old killed by exposure to mould, has been described in detail over the last week. We’ve heard of all the complaints made against Rochdale Boroughwide Housing (RBH), the housing association which owned and managed the flat. And yet, the organisation appears to be full of self-congratulation. It boasts […]
Everyone wants a pay rise, but we will have to pay with cuts to jobs or services
The nation seems to be in the grip of an epidemic of cognitive dissonance. Where is Matt Hancock when we really need him to impose a lockdown and save us from this menace? Two major events have put huge strain on the public finances. The pandemic led to government borrowing of some £400bn, around 20 […]
Sunak’s flexibility has been curtailed by our undue reverence for the Bank of England
Rishi Sunak will deliver an updated Autumn Statement next week, after Liz Truss’ so-called “mini-budget” triggered her demise. His freedom for manoeuvre has been sharply contained by the new found reverence being accorded to the Bank of England and the Office for Budget Responsibility. The Bank of England has forecast a long recession, which could […]
Not all is doom and gloom: a recession is not the only possible scenario facing Britain
The prime minister and the Chancellor are struggling to “balance the books”. Around £50bn might be needed from a combination of cuts to spending plans and increases in taxation. This has led to a chorus of voices squealing about austerity creating a major economic recession. The argument goes back to Keynes, writing in the aftermath […]
It’s time to go back to basics and go about fixing our deficit before more tax cuts
As inflation pushes prices further and further up, food has been getting more expensive for some time. But, as the cliche goes, there was never such a thing as a free lunch. This idea, well known among economists, means prosperity depends upon making the effort to raise productivity. These are concepts which Western electorates are […]
Our public services will keep falling apart as long as our economy continues to stagnate
History is full of examples of the right set of policies being introduced at the wrong time. A dramatic example is the case of Lavrenty Beria, who was the head of the Soviet secret police from the late 1930s. Immediately on Stalin’s death in March 1953 he took control of the government machine, only to […]
