The big challenge isn’t funding public services, it’s making them productive
There’s no shortage of special interest groups placing demands on the public purse. But with limited funds available, we must have an honest conversation about whose claims are the most valid. Waspi women are demanding a staggering £36bn in compensation for having been poorly informed about changes to their pension age. Meanwhile the National Foundation for […]
What if the OBR too optimistic about growth?
The Office for Budget Responsibility (OBR) published its economic and fiscal outlook document in conjunction with Jeremy Hunt’s budget statement on 6 March. Close scrutiny is paid to the short-term projections of growth in the economy made by the OBR. Tax receipts received by the government depend strongly on the rate of growth. And higher tax receipts give a […]
For once, Humza Yousaf has set an example other politicians should follow
Humza Yousaf, the First Minister of Scotland, does not often attract plaudits. But last week he overrode the advice of his officials. Shock, horror. Surely Sir Humphrey and the “experts” always know best. Officials recommended a donation to UNICEF to finance water programmes in Gaza. Instead, Yousaf decided that the money should be given to the United […]
Tech is in turmoil – but there is an upside
The Greek god Chronos, known as Saturn to the Romans, was notorious for eating his own children. Something similar seems to be going on within the tech industry. Tech giants such as Google, Microsoft and Meta have carried out substantial job reductions. Google are apparently preparing for a second round. Forbes magazine estimates that 34,000 jobs have […]
Interest rates aren’t as influential as you think
Criticising the Bank of England has become fashionable in City circles. From persisting too long with quantitative easing, to completely missing the upsurge in inflation to the condescending group think displayed on the validity of its discredited New Keynesian models, the Bank under Andrew Bailey has done plenty to make itself fair game. But when […]
Ricardian Equivalence and why Britain’s really in a recession
News that we have entered a technical recession will come as no surprise to anyone who has even a passing acquaintance with the British economy. But what is less well understood is how personal spending – or rather the lack of it – is contributing to low growth. Household incomes have been squeezed by rises in energy […]
There’s a solution to dire public services: make our public sector more productive
Pre-election blows are being traded with increasing ferocity by both the main parties. Do the costs of Labour’s energy policies bear scrutiny? And can the Conservatives really afford to cut taxes? All of these questions relate back to the state of the public finances. Taxes are already at a post-war high relative to the size […]
Academics publishing pointless papers is another sign of a dire crisis in universities
Universities in the UK have received bad press in the past week or so. It was revealed that many of them have been admitting foreign students with much lower grades than those of British students. The reason is a classic example of the importance of incentives in driving behaviour. Despite their many pretentions to wokery, […]
Marriage: Romantics bemoan its demise but so should economists
The dramatic erosion of marriage in the UK is one of the key social changes of the late 20th and early 21st centuries. Last week, the Office for National Statistics (ONS) published data showing that for the first time the proportion of the population aged over 16 who were married had fallen to below 50 per cent. […]
Port Talbot closure highlights uncomfortable truth about clinging onto the past
The decision by Tata Steel to shut the blast furnaces at the steelworks in Port Talbot, South Wales, has provoked outrage. Almost three quarters of the 4,000 workers at the plant will lose their jobs. On the same day that the news broke, the government announced a £500m subsidy for Tata’s £1.25bn proposed investment on the […]
