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 […]
The misguided sugar tax is an ineffectual way to price the externalities of obesity
One of George Osborne’s last acts as chancellor in 2016 was to announce the so-called sugar tax. This came into force last week, in line with the original timetable. Drinks manufacturers are taxed according to the volume of sugar-sweetened beverages they produce or import. The tax increases with the sugar content. The aim is to […]
Forget exploitation, motorists choose to pay sky high fuel prices
Politicians have an irresistible urge to meddle. The latest example is the fanfare orchestrated just before Easter by Chris Grayling, the transport secretary. He wrote to the Competition and Markets Authority (CMA) to criticise the price of fuel at motorway service stations. Grayling called for the UK’s three biggest operators – Moto, Welcome Break, and […]
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 […]
The chancellor should heed Keynes – and keep public spending down
Last week’s Spring Statement by chancellor Philip Hammond has led to predictable calls to “abandon austerity”. With massive hyperbole, Labour accused him of “astounding complacency” in the face of what they claimed to be the worst ever public funding crisis. The facts are rather different. Far from being squeezed, after allowing for inflation, current spending […]
The social media battle against fake news has begun – beware your own emotions
Did Donald Tusk, the former Prime Minister of Poland and now president of the European Council, conspire with Vladimir Putin to murder the President of Poland, Lech Kaczynski? Many Poles believe this preposterous story, I learned last week at a fascinating conference on social influence at the University of Warsaw. In 2010, a Polish Air […]
Altruism and information deficits: What snowstorms teach us about economics
While weather may not seem like a typical economics topic, there are always interesting aspects to behaviour in any context. Quite a number of drivers, for example, appear to have ignored notices of road closure. They drove on regardless, until becoming stuck in the snow. In Greater Manchester, which seems to have been the vortex […]
The university pensions strike is a selfish bid to hold future generations to ransom
University lecturers began a strike over their pensions last week. The dispute may even run on and jeopardise the summer exams. The main issue is that the universities’ pension scheme seems to be in substantial deficit. To solve the problem, a move from defined benefits to defined contributions is proposed. With the former, the pension […]
Let’s join the IFS in acknowledging our misplaced fetishisation of economic data
Tomorrow, the Office for National Statistics (ONS) will publish its latest estimates on how much the UK economy grew between October and December 2017, compared to July to September. Last month, the ONS thought that there was an increase of 0.5 per cent. The economy cannot be put in a set of scales and measured. […]
Master the art of brinkmanship to run Brexit rings around Barnier
Michel Barnier invokes a wide range of emotions this side of the Channel. To his credit, the EU’s chief Brexit negotiator appears to have a stronger grasp of the insights of game theory than his UK counterparts. Thomas Schelling, the polymath winner of the Nobel Prize in economics, advanced the science of game theory in […]
