
Expansionary fiscal contraction and the emperor’s clothes
George Osborne’s policy of “expansionary fiscal contraction” is based on an economic myth. Britain’s current economic circumstances mean it won’t work.

George Osborne’s policy of “expansionary fiscal contraction” is based on an economic myth. Britain’s current economic circumstances mean it won’t work.

The violent rage of a small minority overshadowed the quiet anger of the many as protests against the government’s education cuts turned toxic this week. Fourteen people were injured and there were 50 arrests following the attack on the Tories’ Millbank HQ on Wednesday, after a peaceful demonstration which saw 50,000 students march on Westminster demanding a rethink of plans to treble tuition fees and slash higher education funding. The violence was immediately condemned by the National Union of Students, NUS President Aaron Porter calling it “despicable”.

A new report on social isolation in care homes has been launched by the Relatives and Residents Association (R&RA). The findings show that at least 40,000 elderly people in care homes in England are living in social isolation and that as many as 13,000 are completely ‘without kith or kin’ and receive no letters, calls or visits at all.

When Peter Tatchell tried to conduct a citizen’s arrest on Robert Mugabe in Kensington 10 years ago, he was aggressively manhandled and later charged with public order offences. Today he could have made an application in front a judge for a warrant forcing the police to arrest Mugabe for crimes against humanity. The coalition government is about remove this right.

Shadow home secretary Ed Balls today attacked the David Cameron’s “Big Society” policy agenda, labelling it a “big con” leading to public services being run by volunteers on the cheap and a significant deterioration in crime prevention.

The Financial Times reports today that home secretary Teresa May was forced to “water down” her first major speech on immigration last week, after an intervention from Downing Street and business secretary Vince Cable. Unnamed sources within the government told the FT that May’s original speech was “over the top” – with particular objections to passages which attacked the level of Tier 1 visas.

David Cameron has made the bizarre claim his vanity photographer will actually save the taxpayer lots of money. Former Tory party staffer Andrew Parsons and WebCameron filmmaker Nicky Woodhouse are being paid £35,000 each by the Cabinet Office, for jobs that were not advertised and didn’t exist under the Labour government.

Writing in the Spectator, Fraser Nelson claims that the 50p tax rate, along with other high profile taxes on the wealthy, actually reduces tax revenue from the top percentile. The major piece of evidence he draws on is the table below. Showing the tax liability through income tax shouldered by various deciles of the tax base, he argues that as you reduce the top rate of tax, you actually collect more revenue.

The coverage of David Cameron’s visit to Beijing has brought the usual litany of clichés and misunderstandings about China, drawing unabashedly on a fine tradition of western depictions of the Oriental “other”. China is unfailingly presented as a totalitarian state, headed by inscrutable politicians with “plastic smiles”. Its population is an undifferentiated mass, herded into conformity by severe limitations imposed on personal freedom.

Tomorrow the House of Commons will debate a new law to make the UK’s meat and dairy production more sustainable, but it is still unclear whether or not the self-styled “greenest government ever” is going to back it. South American rainforests and wildlife rich grasslands are being trashed to graze animals for export to the UK and Europe – and to grow soy to feed our factory farms. This problem is being largely ignored by the Government.