Osborne’s intellectual leap of faith
Today, The Times’ Anatole Kaletsky has a must read piece dismantling the similar theory of ‘Ricardian Equivalence’ … using Ricardo’s own words.
Growth
Economists warn of risk of double dip following poor growth figures
Economists have warned of the increased likelihood of a double dip recession following the news that the British economy retracted by 0.5 per cent in Q4 2010.
Will Osborne be forced to rewrite his script?
The new economics foundation’s senior economist James Meadway delves into today’s GDP figures, and asks if the coalition will be forced to rewrite its script.
Osborne’s optimism looking less and less plausible
Today’s dire GDP numbers show that the government’s reckless gamble with the economy risks plummeting the UK back in to recession, writes Rachel Reeves.
British economy contracts again
Figures out today showed a contraction in the UK economy, shrinking 0.5 per cent in the fourth quarter of 2010, reports Shamik Das.
Balls vows to put “jobs and growth first”
New Shadow Chancellor Ed Balls tonight pledged to put employment and growth at the heart of Labour’s alternative plan for the economy, reports Shamik Das.
OECD forecasts modest growth for UK economy
The OECD released its latest Economic Outlook today, setting out its forecasts for developments in its member countries. It is supportive of the UK government’s fiscal tightening, describing it as “substantial but necessary”, but warns that it will, when combined with weak real income growth, mean moderate output growth over the next two years.
Cameron’s Happiness Index is welcome news for progressives
Simon Kuznets, the Nobel Prize winning economist who helped develop GDP, recognised such flaws when warning the US Congress in 1934: “The welfare of a nation can scarcely be inferred from a measurement of the national income.”
Economic growth beats expectations
The UK economy grew far more rapidly than expected in the third quarter. Real GDP (the total output of the economy) increased by 0.8 per cent and was 2.9 per cent higher than in the third quarter of 2009, according to figures released today by the Office for National Statistics. Economists had expected an increase of just 0.4 per cent.
Cameron’s cashless industrial policy
David Cameron appeared to use his CBI speech to launch a state-financed industrial policy. But the money is not there to back it up.