Our public services will keep falling apart as long as our economy continues to stagnate
History is full of examples of the right set of policies being introduced at the wrong time. A dramatic example is the case of Lavrenty Beria, who was the head of the Soviet secret police from the late 1930s. Immediately on Stalin’s death in March 1953 he took control of the government machine, only to […]
Fooled by correlation
One of the most important lessons from statistics is correlation does not imply causation. This tells us that a relationship between two items does not necessarily mean that one causes the other to occur. A classic example for this is ice cream sales and shark attacks. In the US these two things are strongly correlated. […]
An information campaign on energy usage would have made a lot of economic sense
The prime minister’s apparent veto of a plan to persuade people to use less energy this winter has stirred up controversy. The usual rabble have been quick to decry Liz Truss for abdicating responsibility, following the old lines of those who wanted more or less restrictions during the pandemic. But economic theory can readily justify […]
Our team is growing!
Volterra is delighted to announce the arrival of three new Economic Consultants. Charlie Crosbie recently completed his master’s degree in International Development at the University of Manchester. He has a particular interest in social impact as well as globalisation, trade and industry. Karishma Panchani, who completed a master’s degree in Economics from University College London, is interested in development economics and econometrics. Her presentation […]
Our politicians must wake up to the public debt effect
In a novel by C.P. Snow, a physicist turned author who served as science minister under Harold Wilson in the 1960s, the master of a Cambridge college says that “gratitude isn’t an emotion, but the expectation of gratitude is a very lively one.” The prime minister and her Chancellor may well be having exactly the […]
Low tax regimes only matter as much as their longevity
The tax breaks will, we were told, include 100 per cent relief from business rates on newly occupied business premises, and offsets for companies on spending on new plant and machinery in the first year. Relaxed planning regulations are also set to be part of the package. The race from local authorities to be included […]
We’re hardwired to accept bumper salaries for sports stars but not our City bankers
In a bid to prove her free market credentials – and those of her chancellor – Liz Truss has widely trailed the idea of lifting the cap on bankers’ bonuses. Cue outrage from the usual quarters. At the same time, there was another headline in the Guardian on remuneration which might be thought would cause […]
Strikes are a part of the bargaining process but many current jobs are on their way out
Orgreave in South Yorkshire holds a special place in the memory of the British trade union movement. It was there in the summer of 1984 that a confrontation took place between the police and striking coal miners. It ended in the defeat of the miners in one of the most violent conflicts ever witnessed in […]
How Truss pays for her plan for energy prices is just as important as what she does
Our new prime minister already has a long list of detractors. Yet something many are failing to take notice of is how well she grasps the fundamental importance of generating economic growth. This is the central issue facing the economy and it will determine how, ultimately, we pay for an intervention in the energy market. […]
Our scientists were given responsibility in the pandemic but no public accountability
LAST week, Rishi Sunak rehashed old wounds and stirred up more controversy over lockdowns during the height of the pandemic. The former Chancellor now says scientists were given too much power, where policy choices should have rested with those elected policy makers known as our leaders. Unlike most other government policies, there was little cost-benefit […]
