Push students into maths subjects or watch industry fail July 24, 2012 THE HOUSE of Lords select committee on science and technology has just published an insightful report into higher education in science, technology, engineering and mathematics (STEM) subjects. It rightly suggested that the jobs of the future will increasingly require people with the capabilities and skills that a STEM education provides. However, there is a mismatch [...]
As Spain nears a full bailout, will Germany accept fiscal union to save the Eurozone? July 24, 2012 YES Stephen Barber There is a good reason why markets have been unconvinced by the latest Eurozone intervention: policymakers continue to deal with symptoms while structural problems mount up. This is now the third summer in which investors have seen returns hit by a deepening euro crisis. Each time has resulted (eventually) in credible responses [...]
RAPID RESPONSES July 24, 2012 Mutual benefits [Re: It’s not all bad: Britain is becoming safer despite recession, Friday] Allister Heath is sceptical of mutuals’ ability to add something positive to the market for banking services. But the contribution of mutuals is simple – diversity. For too long, the banking sector has been dominated by a model that emphasises maximising [...]
UK energy policies are sabotaging industry’s global competitiveness July 23, 2012 THE revelation that George Osborne wants fossil fuels to remain a key and important supplier of Britain’s electricity generation shows he can talk the talk. But the chancellor will struggle to give legs to his policy. His statement comes immediately unstuck when you consider how the Treasury is preparing to lump huge taxes on such [...]
Tax and morality: Complicated laws make gaming the system inevitable July 23, 2012 I RECENTLY spent a family holiday in a static caravan in northern France. As we sat outside with a glass of wine, my wife and I wondered why the caravan had wheels – it seemed unlikely that they would need to be moved, and I doubted they would carry its weight. Perhaps it has something [...]
A one-size policy on pay won’t suit all firms equally July 23, 2012 PROFESSOR John Kay is right to try and tackle a culture of short-termism that some listed companies can get caught up in, as set out in his government-backed review of the financial sector. The downsides of short-termism are easy to identify: if investors focus too much on short-term returns, boards are left preoccupied with the [...]
Will Italy and Spain’s decision to ban short selling have any serious effect whatsoever? July 23, 2012 YES Ian Marsh This move by Spanish and Italian regulators was widely expected, as many others have used similar bans in recent years, hoping to stabilise volatile markets or support plunging stock prices. Unfortunately, bans on short selling don’t seem to do either, at least not for long. Apart from some hard-to-verify bounces on the [...]
RAPID RESPONSES July 23, 2012 No quick fix [Re: Coalition’s lack of courage threatens a triple-dip recession, yesterday] Until Britain makes deep cuts in government expenditure to make room for cuts to taxation, there will be no great increase in the spending power of consumers. Pumping up quantitative easing and demanding that banks lend more is a waste of time without [...]
Weak GDP figures won’t mean the economy is about to fall off a cliff July 22, 2012 A BIG health warning should be attached to the second quarter gross domestic product (GDP) figures, when they are released on Wednesday. GDP figures – the official estimates of UK growth – can be very misleading. They can be distorted by temporary one-off effects (including the weather). They are frequently revised, so the initial estimates [...]
Europeans need a Tea Party to reject crony capitalism July 22, 2012 MOST Eurozone news is almost unbearably predictable. Since 2010, politicians have endlessly talked about an “existential danger” to the euro, unless extraordinary measures are taken. We keep hearing from politicians who tell us that the only way to stave off catastrophe is to engineer another bailout – of a bank, of a nation, or of [...]