The economic data for April were bound to be awful and those for the public finances were no exception. Government borrowing last month alone (a record £62.1 billion) was almost as large as the deficit in the whole of last year (£62.7 billion). This included £14 billion for the first full month of the coronavirus … Continue reading We can’t go on like this
Category: Labour markets
Six reasons to be optimistic about the economic recovery
The economic data to be reported over the next few weeks will be pretty grim, adding to the social costs of coronavirus. But if you look beyond the headlines, there are at least half a dozen good reasons to be positive about the prospects for the recovery that will follow. First, the recovery has already … Continue reading Six reasons to be optimistic about the economic recovery
The UK’s labour market needs to be allowed to work
There may not be many reasons for optimism about the economic outlook, but one is the relative flexibility of the UK labour market. This should help unemployment to fall back and activity to recover more quickly – provided the government gets out of the way. There is no doubt that many jobs are being lost … Continue reading The UK’s labour market needs to be allowed to work
‘Intervention is essential, but does not signal a socialist state’
The coronavirus job retention scheme is the biggest step the Chancellor has taken so far, both in terms of its nature (subsidising the wages of millions of private sector worker) and cost (potentially many tens of billions of pounds). This raises three questions. Is this degree of state intervention justified? What more is needed? And … Continue reading ‘Intervention is essential, but does not signal a socialist state’
Plain-speaking Economics 