The wage inflation tax proposed by Sushil Wadhwani (‘Time for the UK to tax inflation’ 5 September) would be inappropriate, impractical, and ineffective. It would be inappropriate because it would prevent markets from working properly. The wages paid by each company to each employee, like the prices of any other good or service, should be … Continue reading Letter to the FT on proposals for a ‘wage inflation tax’
Category: Applied economics
Rishi Sunak should hit his economic targets, but probably won’t get any credit
In January the Prime Minister outlined his five priorities for 2023. As well as promises to cut NHS waiting lists and pass new laws to stop small boats, there were three pledges on the economy. These three at least should be deliverable. The first pledge was to “halve inflation this year to ease the cost … Continue reading Rishi Sunak should hit his economic targets, but probably won’t get any credit
Why expanding London’s ULEZ is a bad idea
The expansion of the Ultra Low Emission Zone (ULEZ) to all London boroughs on Tuesday is a triumph of green ideology over sound policymaking. People are right to be fed up. The scheme is at least simple. Motorists driving anywhere in the zone in a car or van which does not meet Euro emission standards … Continue reading Why expanding London’s ULEZ is a bad idea
Why Mark Carney is wrong (again)
True to form, Mark Carney has made another unhelpful intervention in the Brexit debate. This time his remarks have generated more heat than light on the impact that the vote to leave the EU might have had on UK inflation. And by appearing to validate fears that UK interest rates have a lot further to … Continue reading Why Mark Carney is wrong (again)
Plain-speaking Economics 