For a man who has been Chancellor of the Exchequer for just over four months, Alistair Darling has certainly made some powerful enemies. In fact, it’s hard to think of anybody important with whom he hasn’t fallen out. Sir Ronald Cohen, the private equity king who is one of Labour’s most prominent business supporters, has
Gordon Brown can’t stop himself from meddling, even with his own good ideas. Soon after he moved into No 11 Downing Street, he introduced one of the best pro-growth capital gains tax regimes in the world. Last week his Chancellor Alistair Darling, with Brown grinning approval beside him, undid much of that good work in
First we heard about ‘sub-prime mortgages’; then it was ‘collateralised debt obligations’; now it’s the turn of ‘moral hazard’ to appear on the Ten O’Clock News. Jolted out of prosperous complacency by market turmoil, the public has started to care about economics: strange jargon and obscure concepts previously familiar only to investment bankers are going
If only Alan Greenspan had read John Locke more attentively. The 17th-century philosopher, who doubled as a brilliant economist, was among the earliest exponents of the law of unintended consequences. It is one of the most powerful lessons economics has to teach, yet one the former US Federal Reserve chairman conspicuously failed to heed. To
It will be terribly painful for those of us with mortgages but the Bank of England has done the right thing. Interest rates in the UK are now 5.75%; and they will almost certainly hit 6% before the end of the year. The real question is why the Bank didn’t act any sooner. Inflation has
One of the strangest appointments to Gordon Brown’s new government is undoubtedly that of Digby Jones, the former boss of the CBI, as the new trade promotion minister. When he was first appointed to the helm of the CBI, he was relatively pro-Brown; but as time went on and as his members increasingly complained of
It will come as little consolation to Guy Hands, the financier who complained this week that he must be the last person in Britain still prepared to defend the private equity industry’s generous tax breaks. But I have a confession to make: I, too, am opposed to clobbering private equity funds — and if that
It’s official: Sarkozy has won, probably by around 53.5%-46.5%. In the earliest ever concession speech in a French election, it took only until 8:03 French time for Sego to concede defeat. It sounded almost like a victory speech – although Sego’s fake smile and especially the look in her eyes gave the game away. But
It is now almost certain that Nicolas Sarkozy has been elected France’s next president, in a stunning victory for the centre-right candidate. This is great news for all of us who believe that France must urgently reform if it is to reverse years of relative decline and extricate itself from the dark pessimism which it
When I first moved to Britain in 1995, after a misspent youth in France, there were few Gallic accents to be heard outside the tourist hotspots. The long-established community in South Kensington had been joined by a growing number of French students at institutions such as the London School of Economics, but that was about
Gordon Brown’s 11th and final Budget was a masterpiece of spin and obfuscation, with his headline-grabbing reductions in the basic rate of income tax and corporation tax more than made up for by a series of stealth tax raids. On that point, my friends and I are in complete agreement. But for the first time
When Goldilocks broke into the three bears’ house and stole their breakfast, she found Baby Bear’s porridge to be just right — neither too hot nor too cold. The same is true of today’s ‘Goldilocks’ American economy: it is growing neither too fast nor too slowly but just right, to the great surprise of its
It was Ronald Reagan who warned that ‘inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man’. Having just worked out that my personal rate of inflation is running at a scary 6.6 per cent, I know exactly what he meant. A few months ago
Here’s a provocative thought for Christmas. Instead of buying your nearest and dearest one of those charity goat-for-Africa cards, it would make far more economic sense to buy them a few shares in a multinational corporation which is going to help boost the African economy. It may be deeply unfashionable to say so, but the
For billions of people around the world, these are the best of times to be alive. From Beijing to Bratislava, more of us are living longer, healthier and more comfortable lives than at any time in history; fewer of us are suffering from poverty, hunger or illiteracy. Pestilence, famine, death and even war, the Four
Allister Heath talks to Don Brash, leader of New Zealand’s National party, and finds him much more robust than Cameron on tax cuts, welfare and the environment If you were to cross Clark Kent with Josiah Bartlet of The West Wing, you would end up with somebody very much like Don Brash, leader of New
Once synonymous with men in red braces peddling junk bonds, the leveraged buy-out industry has become almost respectable. This is in large part thanks to some clever rebranding that would make even David Cameron blush; now invariably described as ‘private equity’, which sounds a lot cuddlier, the industry has even enticed that holier-than-thou old rock
Narrow nationalism, hatred of Jews, and chauvinism find their meeting place in anti-Americanism, the acclaimed French thinker Bernard-Henri Lévy tells Allister Heath What is most unusual about Bernard-Henri Lévy is not that he wears his white shirts open almost all the way down to his bellybutton; one would expect little else of a French philosopher
The shootings in a Brixton McDonald’s were a terrible metaphor for the way we live now, writes Allister Heath. A whole section of society, raised on violence and fast food, is drifting away from the rest of the nation: nutrition is destiny Instead of the heavy police presence I had expected to find at Brixton’s
It was fun for David Cameron while it lasted but the Conservative party’s uneasy moratorium on talking about tax cuts is about to come to an abrupt end. The Tory Tax Reform Commission, launched by his predecessor Michael Howard, will shortly deliver its findings — and the prospect is causing panic in the party’s Victoria