LONDON – Slumps have always been boom times for monetary experiments, and the economic collapse of 2008-2009 was no different. Underlying this recurrence is the instinctive feeling that economic calamities must have monetary causes, and therefore monetary remedies. There is either too much money, which causes inflation, or too little, which leads to depression. So the aim of monetary reformers –among whom are always a large number of quacks and cranks – has been to “keep money in order” and prevent its gyrations from disturbing the “real” economy of production and trade.
LONDON – Not so long ago, there were two competing explanations of unemployment. The first was the Keynesian theory of deficient demand, which holds that workers become unemployed “involuntarily” when their community lacks the money to buy the goods and services they produce. The second was the view often associated with the Chicago School, according to which unemployment is a voluntary choice of leisure over work at whatever the offered wage.
A review of the policy debates of the post-crisis years suggests that flawed macroeconomic theories were given too much weight for too long. The result has been slower growth, lost economic capacity, and surplus misery for millions of people around the world.
Ten years after the 2007-2008 financial crisis, it is worth asking where the world’s developed economies are today comma where they would have been had there been no crisis, perhaps more importantly, where they might have been had different policy choices prevailed before and after the collapse.
LONDON – The poisoning of Russian double agent Sergei Skripal and his daughter Yulia at an Italian restaurant in Salisbury has driven an important story off the front pages of the British press. Earlier this month, the former actor and comedian John Ford revealed that for 15 years, from 1995 to 2010, he was employed by Rupert Murdoch’s Sunday Times newspaper to hack and blag his way into the private affairs of dozens of prominent people, including then-Prime Minister Gordon Brown.
My Lords, in his Spring Statement, the Chancellor saw,
“light at the end of the tunnel”.—[Official Report, Commons, 13/3/18; col. 718.]
The light is pretty dim, and the tunnel has been much too long. The two are connected, the dimness of the light being largely the result of the length of the tunnel, as I shall try to demonstrate.
LONDON – February 6, 2018, marked the centenary of the Representation of the People Act, which enfranchised (some) women in Britain for the first time – a reward for women’s work during World War I. In honor of this historic event, statues of two leaders in the struggle for women’s suffrage, Millicent Fawcett and Emmeline Pankhurst, are to be erected in British cities.
LONDON – Dispelling anxiety about robots has become a major preoccupation of business apologetics. The commonsense, and far from foolish, view is that the more jobs are automated, the fewer there will be for humans to perform. The headline example is the driverless car. If cars can drive themselves, what will happen to chauffeurs, taxi drivers, and so on?