Economic Theory
Most of us would expect political parties to spell out how much their manifesto pledges might cost and how they will be paid for, especially when they are promising to spend copious amounts of OPM (Other People’s Money). Of course, manifestos now seem to be little more than works in progress. The Tories have already ... Continue reading
Since the onset of the euro zone crisis, two schools of thought have emerged, offering different diagnoses of the single-currency area’s woes. The first focuses on the supply side, namely, the rigidity of labour and product markets in many of the worst-affected euro zone economies. The second interpretation blames bad governance for the euro crisis. ... Continue reading
Economic Theory
I’m not a fan of Keynesian economics. (Yes, I know: shock, massive surprise.) But for the purposes of this article, let’s assume, just for ten minutes, that it could be proven beyond the shadow of a doubt that Keynesian economic policy recipes would have dragged the UK economy out of the Great Recession quickly and ... Continue reading
Economic Theory
This is an election where the likely outcome is “no change”. There will be no change to the government in office and that government is likely to spend five years doing little except managing Brexit. In the next five years, it is likely that there will be no radical deregulation – of anything. There will ... Continue reading
Economic Theory
Daffyd Thomas, one of the most memorable characters in the ‘Little Britain’ series, is ‘the only gay in the village’. Or so he likes to think. Daffyd loves the role of the outsider, who bravely defies society’s stifling conventions. So he convinces himself that everybody is shocked and horrified about the fact that he is ... Continue reading
Economic Theory
Peter Mandelson was the European Trade Commissioner from 2004 to 2008. You might expect him to know a thing or two about trade. In a recent article in the Evening Standard, lambasting the government’s naiveté about international trade post-Brexit, he drew on this expectation. Having stated his credentials, Mr Mandelson explained that “international trade negotiation ... Continue reading
Economic Theory
According to "The Upshot" column in the New York Times, there's a problem with cheap goods that needs fixing. It's an odd lament that prices apparently aren't rising fast enough, but that's the story the Times' business journalists are telling. To quote the Upshot directly, "There is a worldwide glut that includes oil wells, steel ... Continue reading
“The dividing lines in this election could not be clearer from the outset … it is the establishment versus the people and it is our historic duty to make sure that the people prevail,” said Jeremy Corbyn in his first speech in the election campaign. This isn’t just an election slogan or even a party slogan. It ... Continue reading
Economic Theory
This is a fundamental question for any politician. Few answer it. They give particular answers to particular such questions, of course. They say what they think the government should do about the provision of healthcare, about education, about housing and so on and on. But they rarely give a general answer. They state no principles ... Continue reading
Economic Theory
Though it may seem strange, Karl Marx was not always a communist. As late as 1842, when Marx was in his mid-20s, he actually said he opposed any attempt to establish a communist system. In October 1842, he became editor of the Rheinische Zeitung [the Rhineland Times], and wrote in an editorial: “The Rheinische Zeitung ... Continue reading