Innovation is the only way to recover from the Covid crisis
One silver lining of the Covid-19 crisis has been a surge in innovation. Enterprising firms have invented both new products and different ways of delivering existing ones. Innovation is the life blood of any prosperous economy. Innovation is much more than a scientific invention. It turns inventions into things of practical and affordable use to […]
A tip for Dominic Cummings: Don’t hire anyone who fails to grasp the power of incentives
The job advert issued by Dominic Cummings for people to work in government has attracted a wide range of comments. One particular focus has been on the sorts of skills he is looking for. Computer science, forecasting, artificial intelligence, causality theory — all these topics excite his interest. Cummings advocates a small selection of scientific […]
Creepy micromanagement won’t drive productivity — try trusting staff instead
Calling all employers: what was in your Christmas stocking? Did you find the latest gadget designed to enhance productivity? The innovative device, featured in the media during the festive season, is a toilet with a downward sloping seat. The company which makes it, StandardToilet, has conducted extensive tests. A slope of 13 degrees is exactly […]
Supply and demand at work, or just good bargaining? The reality behind CEO pay
A report published by Deloitte a couple of weeks ago will have enhanced the feeling of holiday wellbeing for many people. The median annual pay for bosses of FTSE 100 companies fell in 2018 to £3.4m, compared to £4m in 2017. This is the lowest level since 2014, when the UK brought in rules which […]
Retailers beware, the online shopping revolution isn’t going anywhere
Another week, another retailer biting the dust. The baked potato specialist Spudulike has closed all 37 of its branches, with a loss of nearly 300 jobs. Shopping centres are undergoing a sudden and dramatic squeeze, with many retailers only able to stay in business if granted a dramatic rent reduction. Last week, Intu Properties, owners […]
It’s not cutting-edge AI we should fear, but mediocre automation
If there were a betting market in future winners of the Nobel prize in economics, MIT’s Daniel Acemoglu would be at pretty short odds. His highly innovative work has already won him a string of prizes. So his research is always worth following – especially when he challenges the conventional wisdom, as in his paper […]
Want to tackle the scourge of fake reviews? The market can help with that
The internet has led to a massive increase in the amount of information available. Often, this is a good thing. For example, shopping around to find the cheapest price for something has become far easier. But it can have its downsides. A report last week from the consumer magazine Which highlighted one such disadvantage. An […]
The intellectual imperialism of economics
At this time of year, most people are focused on leisure. The holiday you have just had, the one you are on now, or the one you are just about to go on. With exquisite timing, the 1 August issue of the top Journal of Economic Perspectives has a symposium of papers about work. The […]
Our automated future is brighter than Karl Marx or Mark Carney would ever suggest
Mark Carney, the governor of the Bank of England, hit the headlines at the weekend, claiming that Marxism could once again become a prominent political force in the west. Automation, it seems, may not just destroy millions of jobs. For all except a privileged minority of high-tech workers, the collapse in the demand for labour […]
Why can PwC charge such superhuman fees? It’s all in the power of bargaining
The liquidation of Carillion continues to feature prominently in the news. Last week, the story was the fees being charged by PwC, the accountancy firm tasked with salvaging money from the wreckage. It emerged that PwC’s fees, which take priority in terms of being paid over the various creditors and pensioners, amounted to £20.4m for […]
