The siren calls for retaliation against the US if President Trump imposes new tariffs on the UK remind me of this exchange from 'Braveheart'.... Longshanks: Archers! English Commander: I beg pardon, sire. Won't we hit our own troops? Longshanks: Yes... but we'll hit theirs as well. The serious point here is that tariffs hurt people … Continue reading Why the UK should cut tariffs on the US, not raise them
Category: Geopolitics
Is defence spending good for growth?
The right amount to spend on defence should, of course, primarily be a decision based on the benefits to our security. But could more defence spending also be good for growth? The short answer is ‘not necessarily’. The overall impact on the economy will depend on how the additional spending is financed, and on whether … Continue reading Is defence spending good for growth?
Should overseas aid be cut to fund more spending on defence?
This week the Prime Minister announced that UK defence spending will now be raised from 2.3% to 2.5% of national income in 2027, funded by cutting overseas aid from 0.5% to 0.3%. The politics around this switch are controversial – the minister responsible for aid has just resigned in protest – but the economics is … Continue reading Should overseas aid be cut to fund more spending on defence?
Trump’s new tariffs are bad for the US – and probably for Britain too
A recent survey by the pollsters Opinium found that, whatever they may think of Donald Trump as a person, a majority of Brits actually like his policies. In most cases this made sense. But the new-found enthusiasm for trade protectionism is worrying and, if I may say so, distinctly un-British. The downsides are already showing. … Continue reading Trump’s new tariffs are bad for the US – and probably for Britain too
Plain-speaking Economics 