Economy

John Humphrys last night presented a documentary on welfare, the single most important topic in Britain. It was excellent, and I’d recommend CoffeeHousers watch the whole thing (on iPlayer here). Humphrys is a great presenter, himself the product of the now-forgotten days of social mobility when a kid from a working-class district (Splott in Cardiff) could end up presenting the 9 O’Clock News in his 30s. “In those days, everybody was expected to work,” he said of his childhood. “We knew only one family where the father did not work, and he was a pariah…. Today, one in three of working-age people is on out-of-work benefits.” This is what the

The Beecroft report is an early test of the government’s willingness to put growth and jobs first. Replacing unfair dismissal with redundancy pay based on length on service would be a sensible step. The argument for it is two-fold. First, the more difficult it is to fire people, the more reluctant firms will be to hire people. Second, the current unfair dismissal culture not only makes firms reluctant to take people on but also swallows up a huge amount of time as firms try to jump through the legal hoops to avoid the threat of a legal challenge. Norman Lamb’s comments today that “to throw away employment protection for everyone

It’s been a year since the Coalition’s Comprehensive Spending Review, but the public is in no mood to celebrate its anniversary. As the economy has failed to recover – GDP was no higher in June this year than at the time of the Review – sentiment has turned against the government. The latest YouGov polling shows that just one-in-three think the government is handling the economy well, against 58 per cent who say “badly”. At the time of the Spending Review, the public was split evenly on this question. Similarly, just 33 per cent think the government’s spending cuts are good for the economy, while half say they’re bad. But

Today’s youth unemployment figures are simply appalling. It’s now 21 per cent amongst the under-25s, above the peak of 18 per cent seen under the 1990s recession. For the first time since then, Britain’s youth joblessness is worse than the European average. This is a tragedy, and not one we should accept as being a grimly inevitable aspect of the recession. Ed Miliband said in PMQs that a million young people are on the dole: a statistic everyone should get angry about. And we can think of what has gone wrong. The above graph shows how Britain has nothing left to boast about in unemployment. Blair used to love heading

This morning, Fraser published a piece criticising the Institute for Fiscal Studies’ definition of poverty. Here is a counterpunch from Julia Unwin, Chief Executive of the Joseph Rowntree Foundation, which is the organisation that funds the IFS. This article is the latest post in our Right to Reply series.  Do we really need another debate about the usefulness of a poverty measure? Of course, no definition is perfect. One of the hardy perennials of the poverty debate is the question of measurement. I wonder what it says about us as a country: why do we spend so much effort thinking about definitions of poverty, and so little responding to the

So the Bank of England has pulled the lever on a second round of Quantitative Easing. Apparently sluggish economic growth, plus more ominous signs from the eurozone, have persuaded the central bank it can’t wait any longer to print more money. But given the evidence from QE1 – only a small boost to GDP accompanied by extra inflation – it’s a big gamble. Mervyn King & the rest of the Monetary Policy Committee clearly believe that more money in the system is what’s needed to kick-start growth. But even they admit that QE1 didn’t live up to expectations, so why should QE2? In the meantime, quantitative easing as an instrument