[Re: Recovery could still be extinguished by Washington’s antics, Friday]
It’s easy to blame the crisis in Washington on a intractable group of Tea Party Republicans. We can criticise their behaviour. But is what they’re saying right? The real problem the US faces is not the debt ceiling (which will likely be raised) but the fact that debt is so high. Under George W Bush, mainstream Republicans voted for a huge expansion in entitlement programmes. Democrats constantly push for more spending. The Tea Party is one of the few voices in the US actually proposing spending restraint and long-term fiscal responsibility.
[Re: Cameron needs growth gazelles to bring life to his land of opportunity, Thursday]
Matthew Sinclair reveals in his analysis that, despite David Cameron’s rhetoric, the government does not understand markets or business. It cuts corporation tax, yet hikes capital gains. It offers entrepreneurs’ relief, yet its restrictive immigration policies hold smaller companies back from bringing in foreign expertise. It claims to care about a competitive energy market, yet introduces so-called simplified tariffs that will have the effect of reducing innovation and competition in the industry, to the detriment of customers.
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It’s encouraging to see the UK economy is growing at on of the fastest rates in the developed world.
I’m coming to view that tax reform needs an equivalent of what Iain Duncan Smith did for welfare.
Cure for press excesses is public opinion. Regulatory cure would be worse than the disease.
UK PMIs have never been remotely this high in the past without triggering interest rate rises.