[Re: Sorry savers: More easing is still needed to support UK recovery, yesterday]
Employment is at its highest level since 1971. Meanwhile, real wages are being driven down by runaway inflation induced by the Bank of England’s weak pound policy. In past recessions, it was the UK consumer that was the driving force behind recovery. But this time, the Bank’s failure to meet its mandate is suffocating real spending power. The Monetary Policy Committee is confused. In 2008, it was rightly fearful of deflation. But since 2009, its fears have proven misguided, and it has made the situation worse by further rounds of quantitative easing. Now the Bank is looking to get back to its target in the “long run”. It would have been interesting to see the UK’s economic performance if the Bank of England had not let inflation spike as high as 5.2 per cent in September 2011.
[Re: Taxing the poor less won’t make them back hikes for the rest, yesterday]
Matthew Sinclair’s article leaves a big question unanswered. If taking people out of tax doesn’t turn them into supporters or opponents of higher taxation for others, what does? He implies there is a mixture of reasons. Political will is clearly hugely important.. Margaret Thatcher could cut tax because she showed the benefits of lower taxation to all voters, not just to small sections of the public.
BEST OF TWITTER
Government borrowing is still up by 1.6 per cent on last year, despite the healthy surplus in January – because of weak growth.
George Osborne’s smoke and mirrors disappears in a puff of smoke. How will he claim that borrowing is falling now?
Osborne included 4G receipts and gilt interest payments to make it appear the deficit will fall this year.
It’s a year since the EU “solved” the Greek crisis with its final, definite, massive bailout. How’s that working out for them?
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