Economy

CoffeeHouser ‘Ben G’ had it right in his comment underneath my earlier post: 24 hour news really does struggle in the face of economic crisis. This morning, all the talk was of a debt-induced apocalypse. Earlier this afternoon, the headlines were about the markets “rallying” after better-than-expected data on the US labour market. And now the BBC website’s main headline is that “turmoil in the stock market persists,” despite those very same labour market figures. Oh yes, it’s difficult to present a consistent front as the money merchants sway and buckle in the breeze. That said, the economic fundamentals remain discouraging. It shouldn’t be forgotten that yesterday’s losses were extraordinary;

…or why the US cuts are actually faster than, and just as deep as, ours. Dear Will, We hope you don’t mind us writing a letter-form response to your latest post on Left Foot Forward, which argues that the “coalition government’s cuts are deeper and faster than the Tea Party’s”. But, as we see it, there are several problems with your figures which are easier to explain in a conversational format. Here they are, as best as we can express them: i) The first obvious problem comes when you say that Obama set out $83 billion of deficit reduction for 2012 in his March Budget. Actually, he didn’t. The Congressional

There are few more useful addendums to Danny Alexander’s comments earlier than YouGov’s poll for the Sunday Times today. It asks people about individual policies for growth, and the results will be disheartening for the Tory leadership and encouraging for Ed Balls. An overwhelming majority supports Balls’s call for a cut in VAT, while few back a reduction in the 50p rate: There’s an almost identical picture when it comes to which polices people think would support growth: Perhaps most tellingly, even Tory supporters are against cutting the 50p rate: And, again, a similar picture emerges with respect to growth: Of course, none of this means that Labour has won

  There was much sly amusement earlier this week when George Osborne, responding to the latest growth figures, described Britain as “a safe haven in the storm”. The idea that our high inflation, low growth economy might be a “safe” anything seemed, to many, a grotesque idea. But, in truth, the Chancellor may have had a point — and it’s a point that he’ll want to make again and again as the recovery stumbles on, and as other indicators fluctuate against him. What the Chancellor was referring to, I’m sure CoffeeHousers know, is the interest rates set by the markets on the UK bonds that fund our borrowing. Broadly speaking,

Terrible events in Norway and the ongoing phone hacking scandal have kept the economy out of the media in the last couple of weeks. Coverage of the latest bail-out of Greece last week was comparatively muted, especially considering how important it is for the eurozone and, by implication, the UK. However, if the soothsayers are correct, it is unlikely that the release of the Q2 GDP figures tomorrow will fail to hit the headlines. When the Office for Budget Responsibility published their forecast for the UK economy in April they had forecast growth of 1.7 per cent this year, but signs are that tomorrow’s Q2 data will raise stark questions