How blockchain will save us from the perils of central bank price fixing February 12, 2016 Many countries have experimented with price fixing and central planning over the last century. Right now, Venezuela’s government is fixing the prices of many products. This has resulted in widespread shortages of goods which we, as the lucky inhabitants of semi-free economies, take for granted. Price fixing has failed in every area of the economy [...]
Google tax row: It’s high time MPs grew up February 12, 2016 The Public Accounts Committee (PAC) has become a vehicle for grandstanding, showboating and political profile-building over recent years. It was perhaps unsurprising, then, to see the latest cohort of MPs on the much-feared PAC sink to a new low during yesterday’s questioning of Matt Brittin and Tom Hutchinson, Google’s EMEA president and vice president responsible [...]
UK steel crisis: As business secretary Sajid Javid faces pressure to save thousands of job he deserves credit for taking a principled stance February 11, 2016 Should we slam heavy tariffs on Chinese imports in the wake of Britain’s steel manufacturing crisis? For some, the answer is a simple “yes” – the government has a responsibility to defend our industries and jobs, so they say. For others, the answer is a straightforward “no” – protectionism, while helping some local businesses in [...]
The EU referendum will intensify calls for a smaller state – whatever the final result February 11, 2016 The next four months will shape UK politics and economics for the next decade and beyond. Based on polling today, the electorate is likely to reject Brexit. But views can shift, and a few high-profile resignations from the Cabinet – throwing careers to the sword – might begin to move public opinion towards the exit door. [...]
Google tax row: Corporate behaviour and the UK’s tax code need to change – and urgently February 11, 2016 The tax affairs of multinational companies have dominated debate in recent weeks. Interest will likely spike again later today, when the Public Accounts Committee takes evidence from HMRC on the tax deals agreed with well-known global corporates. MPs will doubtless have some sharp questions to ask, reflecting increasing public anger around this complex issue. In an ever-more [...]
Is socialist Bernie Sanders the most dangerous man in the United States? February 11, 2016 Chad Wilcox, chief operating officer at the IEA, says Yes. You’d be forgiven for mistaking the US presidential race for a reality TV contest to find the most absurd candidate able to dupe the masses into electing them. But absurd does not equal dangerous. On the latter metric, look no further than senator Bernie Sanders, uniquely [...]
London house prices: First-time buyers using help to buy to purchase London properties could face trouble if the bubble bursts February 10, 2016 When markets are in turmoil, the natural inclination is to turn to safer assets – and what, in our collective wisdom, is safer than houses? People always need a place to live, the rationale goes, and they always find a way to pay. But rather than taking a big punt on housing, many hedge funds [...]
Bashing landlords won’t bring down sky-high rents in London February 10, 2016 The proportion of households renting privately in London has more than doubled over the last 10 years. And with demand far outstripping supply, fears are mounting that London’s sky-high rents will rise even further. Some believe a simple fix would be for the winner of May’s mayoral election to introduce some form of rent control in [...]
Why Julian Assange shows that only intelligent machines can be truly rational February 10, 2016 Is Julian Assange rational? There are no prizes for guessing the responses of most City A.M. readers to this question. He faces questioning over allegations (which he denies) in Sweden, and he claims that America will try to extradite him and put him in prison for a very long time. Assange has chosen instead to [...]
Executive pay is broken: How to reform the system to reward success and restore public trust February 10, 2016 Once again, battle is about to begin over executive remuneration. As we enter the season when shareholders gear up to vote on this year’s results, the threat of acrimony looms, but also a sense of weariness that all sides are trapped in a system that does not really work. According to regular surveys by the [...]