As Germany’s Schauble says Grexit may be the best way forward, is the deal designed to fail? July 16, 2015 Desmond Lachman, resident fellow at the American Enterprise Institute, says Yes Wolfgang Schauble is certainly right to suggest that Grexit would be in Greece’s own interest. The economic programme that the Troika imposed on it last weekend is very little different in substance from those policies that have failed so spectacularly in the past. Specifically, [...]
The voters aren’t stupid: David Cameron must hold his In/Out EU referendum now July 15, 2015 Between David Cameron’s election victory and his address at the recent summit in Brussels, the debate in Britain over its place in Europe has sparked into life. Polls suggest more than half the electorate support remaining in the EU. Business leaders’ views are varied, but one thing they all agree on is that prolonged uncertainty [...]
Ten reasons why gender pay differences don’t prove discrimination by employers July 15, 2015 We can all agree that gender pay discrimination is wrong, but there is also too much gender pay disinformation at present. Gender pay differences neither prove nor disprove discrimination. There is undoubtedly a significant difference in the full-time hourly pay of women compared with that of men, even though this gap has narrowed over [...]
MPs on entrepreneurship: Do they even know what they’re talking about? July 15, 2015 Politicians rarely miss an opportunity to praise those business owners brave enough to strike out on their own. With 581,000 new firms registered last year, there is little doubt that Britain is in the throes of an exciting entrepreneurial purple patch. But how much credit can government take for the surge in new companies? Business [...]
With real wages rising at the fastest pace since 2007, should interest rates rise now? July 15, 2015 Guy Foster, group head of research at Brewin Dolphin, says Yes Inflationary pressures are probably muted but there are four compelling reasons for raising interest rates as soon as possible. There is a growing generation of borrowers who do not know that variable interest rates can vary. The longer they remain unaware, the more risk [...]
Deterring short-term trading won’t make firms invest for the long term July 14, 2015 Toyota has announced a new class of “long-term” shares, which give investors a higher pay-off if they hold onto them for five years. By locking in its shareholders, Toyota believes that it will have the freedom to undertake long-term projects, rather than being pressured to pursue short-term profit. And Toyota’s idea is echoed elsewhere. [...]
Scandinavia provides the evidence for George Osborne’s war on welfare July 14, 2015 George Osborne’s Budget has been met with predictable outrage from the poverty lobby. The cuts to the welfare budget will allegedly create shocking levels of deprivation. Young people in particular, it is stated, have been singled out for punitive measures. On the face of it, the arguments seem plausible. Many people on benefits will get [...]
Two cheers for Obama’s historic Iran nuclear deal July 14, 2015 During my decade working in Washington, those who survived and thrived in the shark tank – regardless of ideology – tended to have one thing in common: an eerie sixth sense for which power-brokers were in it for themselves, and for that treasured minority who were involved in politics for the greater good of the [...]
Will Cameron help women in the workplace by forcing large firms to disclose gender pay data? July 14, 2015 Vicky Pryce, chief economic adviser at CEBR and author with Stefan Stern of Why Women Need Quotas (Biteback, 2015), says Yes Voluntary arrangements have not worked and forcing organisations to publish pay differentials is now essential. Interestingly young women do better than young men in their 20s. But thereafter the trend changes and the pay [...]
Greece makes further euro integration unavoidable – with big risks for the UK July 13, 2015 After months of wrangling, Eurozone leaders and the Greek government finally seem to have reached an agreement on a third bailout deal. EU politicians and the markets may breathe a sigh of relief at the prospect of some short-term stability being restored. But even if this new deal manages to stave off Grexit in the [...]