As crisis deepens in Spain, could Catalonia succeed in its desire for full independence? September 27, 2012 YES Yogesh Chandarana Political regimes collapse when governments no longer command the people’s respect. So, when approximately 1.5m Catalonians, of a total population of 7.5m, take to the streets demanding independence, we should take note. Catalonia has disproportionately born the brunt of cuts, with public investment by the national government cut by 45 per cent [...]
Rapid Responses September 27, 2012 Pensions fiasco [Re: Auto-enrolment will fail unless it fosters a broader savings culture, yesterday] The main reason why we’ve seen a decline in long-term savings is government interference in the economy, and a similar lack of willingness to tackle the scourge of inflation. Most savings have lost their real value over time, partly due to [...]
Auto-enrolment will fail unless it fosters a broader savings culture September 26, 2012 WE ARE on the brink of a revolution in workplace pensions. From 1 October, new laws designed to address the dramatic decline in long-term saving will force all employers to provide pensions for their staff. Employers will automatically enrol them, and employees will have to opt out if they don’t want to contribute to pensions. [...]
Events, dear boy, events: Romney’s last hope of ousting Barack Obama September 26, 2012 FOR Republicans, the daily polling page on the RealClearPolitics website makes for dismal reading. Democratic blue adorns each swing state poll, with Barack Obama markedly ahead in Ohio. At this stage, some didn’t even expect the President to be competitive in North Carolina. Instead, he finds himself up and outside the margin of error. Mitt [...]
In the real world high taxes restrict economic growth September 26, 2012 HIGHER taxes and higher spending are associated with weaker economic growth. That is the clear conclusion of a wealth of increasingly sophisticated studies conducted over decades. The final report of our 2020 Tax Commission summarised 18 studies from the 1970s, which found higher spending or higher taxes diminished the level or growth of national income. [...]
As reform of Libor begins, can London retain its dominant role in the interbank market? September 26, 2012 YES Ian Harris Martin Wheatley’s Financial Services Authority (FSA) report into Libor will reportedly result in a regulated, transaction-based replacement system. The British Bankers Association’s (BBA) role will end. It is good that Wheatley is set to move swiftly and in the right direction – this change is not before time. This week, my firm [...]
Rapid Responses September 26, 2012 Clegg on housing [Re: The ideas emerging from Lib Dem conference dissolve under scrunity, Tuesday] Nick Clegg, and the coalition more broadly, are failing to pursue sufficient supply-side reform in the housing sector. The reason approved sites are lying idle is because the current planning system limits supply. The really big money is to be [...]
Technology only boosts growth if countries can exploit it effectively September 25, 2012 OVER the last five years, the British economy has experienced its worst growth since the 1920s. Yet, in important respects, the economy is faring far better than it did back then. Part of the reason lies in low interest rates and forbearance on the part of lenders, which have both helped to soften the damage [...]
George Osborne’s economic policy seeks to blind markets from the truth September 25, 2012 ANDREW Mitchell, the government’s chief whip, remains in some difficulty after his exchange with the police at the gates of Downing Street. At the heart of the incident there is an objective reality. Either he used the word pleb, or he didn’t. Either the police were officious jobsworths, or they were the epitome of politeness. [...]
After more banks signed up to Funding for Lending, is it likely to help UK business? September 25, 2012 YES Corin Taylor Funding for Lending – the scheme run by the Bank of England which seeks to stimulate the economy by making cheaper loans available to firms and individuals – is fine as far as it goes. But we must be sure not to overstate its likely benefits. Those companies that would already qualify [...]