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Tag Archives: Economics

“Crashing out” of the EU – how big a crash?

The Bank of England published this graph showing the effect of leaving the EU with no deal in its report: EU withdrawal scenarios and monetary and financial stability: The graph is designed to look as scary as possible.  However, when we read the notes on page 53 we find this little …

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Eight days a week

I have been thinking about John McDonnel’s proposed four-day week. Obviously, I’d have got this piece out yesterday except it was one of my down days. I’m guessing the same excuse would become commonplace with clients demanding service – how dare they? The possibilities are endless: The production line, dispatch, …

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Financiers are not just “greedy bankers”

I would hazard a guess that most people have heard the refrain “greedy bankers” to denigrate the wealthy individuals who work in the financial sector. However, how many are actually aware of what these people do, and what role does investment banking actually play in the economy? Not ‘just’ greedy …

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Why Trade Deficits Must be Avoided

I have just finished reading yet another article on how Trade Deficits are harmless or even good for a country (The Trade Deficit Matters, But Not How You Think by Jeffrey Dorfman). Trade deficits happen when a country imports more than it exports, the excess imports need to be purchased …

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Are the Conservatives the Party of the Rich?

Writing for the Daily Globe UK several weeks ago, I sought to defend the current government in terms of policies which have impacted on the lowest paid in Britain. I defended the Conservative record and argued against the media narrative that the lowest paid have been hammered by a pernicious …

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Britain’s Post-Brexit Meritocracy

The 2017 general election showed that many young people are rejecting Conservativism and even capitalism itself. If we are to build a more socially mobile post-Brexit society we need to ensure that Margaret Thatcher’s popular capitalism can prevail once more. Employment and wage prospects can be significantly improved for the …

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Considering Project Fear’s No Deal Brexit Plans

Earlier last week, we found out that May had finally decided to get planning for a No Deal Brexit. This was something Brexiteers were very eager for – everybody felt that now, after two years, perhaps we could finally get somewhere and achieve what we had voted for. Perhaps now …

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The foolishness of Keynesian stimulus

The economics of Keynesian stimulus: Spend more money on public services than tax intake People earn more money and spend more money More money earnt and spent means more tax intake Result: win-win… right? Theory vs practice Assuming everyone is taxed at 40%, let’s see how this plays out… Under balanced …

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The Damaging Effect of EU Ownership of UK Industry

We have all read how Foreign and EU companies have been buying up UK companies (See Selling off Britain is not a sign of strength.. and Independent Article). How much does this cost the UK?  What does it cost you and me? Foreign owned UK companies accounted for 50% of all UK business turnover in …

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What is ‘affordable housing’?

I assume most people take ‘affordable housing’ to mean accommodation that is affordable, something that people on average levels of income are able to afford to buy. But let’s go back to basic economics: What determines the price of a property? Although there is a rough correlation in that, if …

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Trumponomics as a viable economic plan?

Donald J. Trump… The Hollow, The Pompous, The Taunting Peddler Aka The 45th President of The United States of America. A man continuously embroiled in controversies. Disclaimer Now let me make it clear, I do not condone any of Trump’s words or actions but for a while I, like many other, …

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Wealth creation is not a zero-sum game

A “zero-sum game” means that everyone’s gains are accounted for by someone else’s loss. Apparently, this is what socialists believe: “Capitalists cannot keep making money forever, because eventually they will have taken all the value from the world and would have to start taking money from the poor.” – Socialism 101 …

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Shouldn’t the rich contribute more?

Richest 1% pay 29% income tax. How much more can we expect the rich to contribute? Shouldn’t the rich contribute more? How much the rich contribute Rich people already contribute more. How much more? Here are some rough statistics of how much tax is contributed according to income bands (from 2012, United Kingdom)… …

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How #Brexit would benefit the UK’s finance sector

Ever since the results of the United Kingdom’s referendum on EU membership was finalised, much has been made (particularly in the City) of the impact on the UK’s financial sector. Indeed, I myself held a similar opinion: Regulatory Passporting: The killer argument against Brexit. Much of the UK’s success in the …

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Corporatism: A Daring Dream, Part II

It was my original plan to publish a three-part series of essays on corporatism. Unfortunately illness set back that plan initially, and so I was planning to make two parts. That plan is coming to fruition in some ways, but even this is going to be a little different to …

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Corporatism: A Daring Dream, Part I

Corporatism is a word with many meanings, and no one seems to know what precisely any of them are. Corporatism is a diverse set of theories, but it should be thought of in purely economic terms. When we think of ‘corporatism’ today, I am sure that most people would think …

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Oxfam and Misleading Statistics

It’s that time of the year again! Oxfam has released its latest Global Inequality Report in which it is made to seem like we live in a dystopian future where all the resources are in the hand of a select few and the remainder of the world is somewhere between …

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Pound Recovers

Unlike the vast publicity given to the sharp, but relatively small, fall in the pound after the EU Referendum, the recent recovery of the pound has had little mention. The graph below charts this recovery: You can check this graph for yourself at XE.COM, a major commercial currency and foreign exchange …

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Have economists and economics journalists sold out?

Those who follow economics now know that the economic “experts” were wrong about their predictions for the period between the Referendum and today.  This has scarcely been covered by broadcasters and this lack of coverage has left many Remain voters believing that an economic disaster is imminent.  The absence of any coverage …

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