Is the ‘rent-seeker’ dying out?
The concept of the “rent seeker” is one of the most valuable in the whole of economics. The activity of rent-seeking involves obtaining money by manipulating the social or political environment in which economic activity takes place, instead of getting paid for creating new wealth. It is a part of public choice theory, for which […]
Can England win the World Cup?
Autumn is fast approaching. The focus of the nation’s sporting interest is switching. No sooner have our boys humiliated the Australians, than a new challenge emerges in the shape of two important qualifying games for the soccer World Cup. The comedian Bob Doolally articulated the views of many when he said: ‘If courage, endeavour and guts […]
Our economic recovery is real, but what we can still learn from the US?
Some people are never satisfied. The evidence is mounting that the UK economy is now on the path to recovery. But to those who denied the possibility of any economic revival at all under the policies of “austerity”, this is simply not good enough. It is the wrong kind of recovery, they say. Fuelled by […]
How sticky is unemployment? Will it take three years to fall?
The views expressed by the new Bank of England Governor, Mark Carney, on interest rates and unemployment remain a hot topic. Interest rates will not be raised until unemployment falls below 7 per cent, a process he thinks will take three years. The perception which many people have of unemployment is indeed that it is rather […]
No interest rate changes for three years? Zero hours contracts for the Monetary Policy Committee!
The new Governor of the Bank of England, Mark Carney, said last week that interest rates will not be raised until unemployment falls below 7 per cent, a process he thinks will take three years. The battle of Austerlitz in 1805 was one of Napoleon’s greatest victories, leading to his complete domination of Continental Europe. […]
Recovery and summer are in the air, but doom mongers still lurk
The GDP growth figures announced last week for the second quarter of this year have sent most people away on their holidays in a cheerier mood than last year. The recent weather has certainly helped. But gloomy clouds may hover over the exclusive settings of Tuscan villas and beach houses in Martha’s Vineyard, where bien pensant commentators […]
No free lunch. Defaults today mean less jam tomorrow
Potential defaults in the Euro zone have been in the news again. In Portugal, the ruling coalition parties and the main opposition Socialists have been unable to agree on a European Union-led bailout plan after days of talks. Yields on the country’s 10 year bonds have approached 7 per cent, compared to the 1.5 per cent in […]
Ignore the IMF: There’s no reason for its ludicrous forecasts to change sentiment
The economics department of the International Monetary Fund (IMF) is up to its old tricks again – changing its mind. Just three months ago, the team cut its forecast for UK GDP growth in 2013 to 0.7 per cent from 1 per cent, sparking charges that George Osborne should alter his policies. Last week, the […]
You wait for one bus then three come at once: Andy Murray and economic recessions
So Andy Murray becomes the first Briton to win the men’s singles for 77 years. When might we expect the next celebration? We can look at the typical ‘waiting time’, to give the concept a name, between victories from players from the same country. For example, Roger Federer won in both 2006 and 2007. Here, the ‘wait […]
Always Look on the Bright Side
The American economic recovery carries on apace, with a net rise in employment of almost half a million over the past three months. The Office for National Statistics has decided that the UK never had a double dip recession, and the texture of the economic news has turned positive. But economics is not called the […]
