From the TUC

Economics (page 2)

ONS wealth data: The rich just got considerably richer

18 Dec 2015, by in Economics

In cash terms the top 10% now own £5.0 trillion of UK total household wealth, according to the latest ONS wealth and assets survey (over 2012-14). With total wealth standing at £11.1 trillion, that means they have 44.8% of it. Last time this was calculated (2010-12), they had £4.1tn of a £9.4tn total – so owned…

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Mixed messages on deflationary/disinflationary pressures

15 Dec 2015, by in Economics

November CPI inflation at 0.1% following October at -0.1% was in line exactly with the Bank of England forecast in their November Inflation Report. But it seems highly likely that their projected December figure of +0.4% will be wrong. Global deflationary pressures are surely intensifying, given the resumed falls in oil and other commodity prices.…

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Osborne’s new (very modest) ‘Keynesian’ clothes

26 Nov 2015, by in Economics

Paul Johnson of the IFS has rightly put a stop to the idea that the Spending Review (SR) signalled the end of austerity. But in a very modest way this event continued a ‘Keynesian’* turn. Yesterday I set out the accounting logic (here); the underlying macroeconomic logic could easily be regarded as in the spirit…

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Osborne commits to industrial strategy #SpendingReview

25 Nov 2015, by in Economics

In his speech to Parliament today, the Chancellor, George Osborne said: “Businesses also need an active and sustained industrial strategy. That strategy launched in the last parliament continues in this one.” To be truly accurate, the strategy was launched in the parliament before last, with Peter Mandelson’s ‘New Industry, New Jobs’ policy. But let’s not…

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It’s time for real action to #SaveOurSteel

21 Nov 2015, by in Economics

I’m visiting the Steel City, Sheffield, today for a big rally in solidarity with the thousands of steelworkers currently fighting for their jobs, their livelihoods and their communities. I hope we’ll be able to send a clear message to the government that we need urgent action, not just to safeguard thousands of highly-skilled jobs, but…

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Fiscal fallacies and sectoral balances: response to the critics

19 Nov 2015, by in Economics

The last two posts on ‘fiscal fallacies’ (‘Keynes wanted government loan expenditures NOT deficit spending‘ and ‘accounting identities and the case for government loan-expenditures‘) have generated something of a debate, including on Richard Murphy’s blog (here).  Further discussion follows … including a comparison of the behaviour of these accounting relations over 1946-50 with 2010-14. I know the…

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Fiscal fallacies (2): accounting identities and the case for government loan-expenditures

10 Nov 2015, by in Economics

Related to the fallacy of deficit spending are arguments around accounting identities and the ‘principle of sectoral balancing’. The economics is extended from the government’s balance (its deficit or surplus), to the balances for all ‘sectors’, i.e. households, companies and the rest of the world. On this basis there are four balances, though they originate…

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