As the EU contemplates imposing a tax on US internet firms, is this a step backwards? January 20, 2015 Charlotte Bowyer, digital policy researcher at the Adam Smith Institute, says Yes Europe is lagging far behind the US in terms of digital innovation. The US’s technology policy champions experimentation and risk, with the presumption that entrepreneurs should be able to try new things without first seeking permission. In Europe, the opposite is the case. [...]
Why socially responsible investing has finally entered the mainstream January 19, 2015 When we come to look back on 2014 in the years ahead, I believe that it will be seen as a watershed year in the long and varied history of investing. While there hasn’t been a single transformational event or action, over the past 12 months I believe that there has been a real change [...]
Granny bonds: Politicians must stop buying votes with subsidies for the old and rich January 19, 2015 One of the insights of the “public choice school” of economics is that voting groups with more homogenous interests will have much more influence on the political process than those with diffused concerns. In recent years we have seen this clearly with pensioners. Whenever it is suggested that it would be prudent to examine the [...]
Why we should beware Oxfam’s claims about the world’s richest 1 per cent January 19, 2015 Oxfam tells us that global wealth inequality is increasing, as the world’s 80 richest people are approaching the same cumulative wealth as the entire bottom 50 per cent of the planet. In fact, the top 1 per cent is about to end up with 50 per cent of everything. This is just terrible, of course, [...]
Is the EY Item Club right to predict that UK growth will significantly accelerate in 2015? January 19, 2015 Mark Gregory, EY’s chief economist, says Yes We believe growth will accelerate in 2015, largely due to income growth. The UK consumer has been lashed by rising fuel and food prices for so long, but is now emerging as the major beneficiary. Low inflation combined with cheaper commodity prices, as a result of falling food, [...]
Opec is dead: The oil war could crown America as the global swing producer January 18, 2015 I well remember suffering through my college macroeconomic class, steeling myself to stay awake through the consumption of gallons of coffee. However, one of the rare things that piqued my interest was the theory of cartels. Properly defined, an efficient cartel possesses three basic properties: the ironclad discipline of its membership; a commanding market position; [...]
Don’t turn the clock back: Expanding Gatwick Airport is in everyone’s interest January 18, 2015 This summer, the Airports Commission will recommend where Britain’s next runway should be built. In simple terms, it comes down to a choice about the sort of country we want Britain to be in the twenty-first century. We all want Britain to grow and to prosper. The question is whether we pursue economic growth at [...]
London’s new crisis: A shortage of offices will do immense damage January 18, 2015 If London is to reach its economic potential in 2015 and beyond, its office space must be protected. Otherwise, the lack of affordable housing in the capital will be matched by a lack of affordable office space. The crisis in the provision of housing for Londoners is an undeniable issue; for London to remain a [...]
2015 World Economic Forum: As the global elite prepare to gather in Davos, is the annual meeting a waste of time? January 18, 2015 Philip Booth, professor at Cass Business School and editorial and programme director at the Institute of Economic Affairs, says Yes. The world’s great and good will meet in Davos this week. The meeting is dangerous and perpetuates a fallacy. It’s dangerous because it provides a forum for rent seekers (big business and regulators) to meet [...]
Don’t count on cheap oil and money to stave off a new Eurozone crisis forever January 15, 2015 The Eurozone is in a vulnerable state once again. Five years ago, the euro crisis – that bête noire of the region’s economy – unfolded. Since then, much has been done to repair and strengthen the Eurozone’s architecture, ranging from the establishment of a bailout fund and the creation of a banking union, to European [...]