‘Helicopter drops’ and the magic money tree…

".............. governments need to deploy massive fiscal stimulus, including through “helicopter drops” of direct cash disbursements to households. Given the size of the economic shock, fiscal deficits in advanced economies will need to increase from 2-3% of GDP to about 10% or more. Only central governments have balance sheets large and strong enough to prevent … Continue reading ‘Helicopter drops’ and the magic money tree…

There is a magic money tree (or a forest) after all!

Just think. Barely a month ago government was still sticking to its ‘fiscal rules’ about how much it could borrow and for what. Loosening the ‘austerity’ straitjacket slightly but still reminding us that there was no ‘magic money tree’,  everything needed to be costed and paid for. On the eve of Chancellor’s 'coronavirus' budget, announcing … Continue reading There is a magic money tree (or a forest) after all!

Tories dismantling their own ‘reserve army’

  While all major western capitalist economies have experienced a growth in the proportion of low paid, low skilled work especially within the service sector, these trends have been particularly pronounced in the UK. Accelerated by a decade of austerity they have been the deliberate result of an economic model promoted by Boris Johnson's predecessors. … Continue reading Tories dismantling their own ‘reserve army’

Manufacturing jobs are not coming back.

Labour has always been the party of manufacturing.  By the second half of the 20th century, factory workers had taken over from those working in ‘primary’ production  as  Labour’s main union base.  A need to rebuild manufacture is now, if speeches by  leadership candidates and trade union general secretaries  are anything to go by, seen … Continue reading Manufacturing jobs are not coming back.

Income inequality and Labour’s mild tax reforms

Labour’s planned tax rises for those earning over £80 000 have attracted their fair share of controversy.  While these will  affect  comparatively few (around 5%),  some critics argue that Labour would have to impose wider increases in income tax to pay for its program. But as the graph below shows  opportunities appear  limited.  Levels of … Continue reading Income inequality and Labour’s mild tax reforms

Labour: the long and the short.

Jeremy Corbyn’s speech at this week’s TUC conference, reaffirms Labour’s commitment to changing the balance of power within the labour market. Alongside the repeal of anti-union laws, Corbyn promised to introduce sectional collective bargaining, something that still exists in many European countries despite the decline of traditional industries. There’ll be a ministry for employment rights … Continue reading Labour: the long and the short.