Don’t blame immigration policy for the problems in our labour market August 12, 2013 TWO years ago, as the recovery stalled, a number of commentators suggested that the main problem with the UK economy was too much “red tape” preventing employers creating jobs. In response, the government commissioned a report from Adrian Beecroft on labour market regulation. It was deservedly mocked for ignoring the evidence – and, in particular, [...]
The Bank’s low interest rates will block our path to sustainable recovery August 12, 2013 THE Bank of England wants to secure sustainable growth and reduce unemployment by promising to keep rates near zero for three more years. Its new “forward guidance” commits to maintain rates at current emergency levels, even in the face of economic growth and above-target inflation. The success of this strategy depends on encouraging more lending [...]
Why we must not write off coal’s potential to solve our energy crisis August 12, 2013 THE DEBATE over Britain’s abundant shale gas reserves is welcome. It reflects an acknowledgement, at last, by policymakers that energy security and costs are at the top of voters’ priorities, and need to be urgently tackled. The hype about shale gas’s incredible potential is sweeping all before it, but policymakers must not overlook coal – [...]
Letters to the editor – 13/08 – Board quotas, Forward guidance, Best of Twitter August 12, 2013 Board quotas [Re: We must be more meritocratic – but quotas are not the answer, yesterday] The quota plans come at a time when there is an existing organic trend towards greater workplace equality. More females apply to university than males, and 60 per cent of law and medicine students are women. Figures from the [...]
Mark Carney’s policy has amplified political opportunity for the Tories August 11, 2013 NO REAL rock star has ever received such rave reviews for promising to do nothing for three years. But Mark Carney breaks the mould. The new Bank of England governor has pledged to keep interest rates at 0.5 per cent until 2016, unless the economy is threatened by “knockout” conditions. Keeping the taps of cheap [...]
City Matters: London schools are on the up – but we must raise standards even further August 11, 2013 THIS week, teenagers across the country will receive their A-level results, and embark on the next stage of their academic and professional lives. Young Londoners have more reason than most to look forward to this exciting period. Only a couple of decades ago, the capital’s schools were among the worst in the country. Since then, [...]
Population growth is irrelevant: Institutions and incentives matter August 11, 2013 THE UK now has one of the fastest-growing populations in Europe, according to a new report by the Office for National Statistics. In just one year, the population grew by over 400,000 people (to a total of 63.7m), adding the equivalent of a city the size of Bristol. A growing population means growing demand for [...]
Letters to the Editor – 12/08 – Brussels deal, Monetary Policy, Best of Twitter August 11, 2013 Brussels deal [Re: British business would thrive under a bespoke new deal with Brussels, Friday] The author believes it is possible to have “minimum regulation from Brussels, and maximum access to the Single Market”. It sounds too good to be true because it is. Of the three templates discussed, only Norway’s would give full access [...]
History repeats itself: Why the Bank’s interest rates pledge lacks credibility August 8, 2013 FROM 1992 until 2007, the UK had a monetary policy framework (a system for how interest rates were set and money printed) called “inflation targeting”. By 2007, the target was 2 per cent inflation, but inflation was allowed to deviate from this point target, for short periods, by up to 1 per cent provided it [...]
The Long View: Our very own Breaking Bad could be the wake-up call we desperately need August 8, 2013 BRITAIN needs better liars. Having lost our tolerance for taking reality straight up, we need a more palatable way to swallow hard truths. And for this, truth sugared by fiction looks like the best option we have left. In other words, Britain needs its own Breaking Bad, the greatest television drama since The Wire, which [...]