Reform the regulators to ensure markets work in the consumer’s interest October 17, 2013 WHEN should governments intervene in markets? George Osborne recently described the Help to Buy scheme as a “necessary intervention” to fix a specific market failure – the shortage of high loan-to-value mortgages. Aside from concerns that this may pump up a housing bubble, Osborne’s comments – and Ed Miliband’s earlier proposal to inject more competition [...]
Letters to the Editor – 18/10 – EU trade falsehoods, Uncertain investors, Best of Twitter October 17, 2013 EU trade falsehoods [Re: The EU debate is critical for business, Wednesday] Helen Brand is wedded to the false argument that EU membership equals jobs. Trade creates jobs, and EU membership is not essential for it to continue. The UK now exports more to the rest of the world than to the EU, enjoying job-creating trade [...]
Don’t fear free: Candy Crush Saga is the future of the profitable product October 16, 2013 YOU CAN’T make money on the AppStore. Everything is free and you can’t get consumers to pay for anything.” That’s what I often hear from companies that have dipped their toes into the Apple ecosystem, failed to understand that it’s a new way of doing business, and drowned in the turbulent waters. It’s a common [...]
The banking industry is getting its act together – and now it’s time to deliver October 16, 2013 I’VE HEARD some strident things from businessmen since taking my job, but one recent outburst sticks in my mind. It was at a meeting last month, and a northern business leader cleared his throat and declared: “Actually, I think the banks have been doing a really good job.” I wouldn’t say I’m meeting such enthusiasts [...]
How to ensure a rise in the personal allowance delivers on its promise October 16, 2013 INCOME tax cuts, or the promise of them, seem likely to play a big part at the next election. Having delivered on what was initially a Liberal Democrat policy to raise the personal tax allowance to £10,000, both sides of the coalition appear keen on further increases after 2015. For its part, Labour says it [...]
Letters to the Editor – 17/10 – Housing standards, Best of Twitter October 16, 2013 Housing standards [Re: Gold-plated rules stop Londoners getting the homes they most want, yesterday] The Create Streets team can rest assured that the mayor’s aim to raise design standards for housing in London is by no means”‘gold plating”, nor is it blocking the building of terraced housing. The London Design Guide is reversing the trend for [...]
A troubling marriage between the EU and big charities is damaging Europe October 15, 2013 SHOULD government work hand in glove with charities? It’s a question that is becoming increasingly controversial. We usually think of charities as independent bodies, funded by voluntary donations in the pursuit of good causes. These are traditionally quite separate from government programmes – which is why they deserved our philanthropy. Yet the line that used [...]
Against the Grain: We may be finally tackling the economic dilemma central to grade inflation October 15, 2013 YOUNG adults in England have scored almost the lowest results in the developed world in international literacy and numeracy tests. According to a recent study by the Organisation for Economic Co-operation and Development (OECD), out of 24 countries, England’s 16-to-24-year olds rank 22nd for literacy and 21st for numeracy. New Labour and the educational establishment [...]
Gold-plated rules stop Londoners getting the homes they most want October 15, 2013 HOUSE prices in London are soaring, with the Office for National Statistics identifying a 8.7 per cent rise in the past year alone. But on top of this, Londoners are not getting the homes they most want – terraced houses and flats. According to research we’ve just published, London’s gold-plating of national housing standards is [...]
Letters to the Editor – 16/10 – Rational markets, EU relationship, Best of Twitter October 15, 2013 Rational markets [Re: What the latest Nobel Prize winners in economics can teach us, yesterday] Of course rational market theory assumes investors use all information in a detached and continuous way, and completely ignores behavioural finance. And the idea of mean reversion is correct in theory, but in practice often there are new informational disturbances [...]