Economics Observatory’s Post

🗺📈 The roadmap out of #stagnation for Britain is finally here – and it’s time to get serious about low growth and high inequality in the UK. After nearly three years of research, The Economy 2030 Inquiry – a collaboration between the Resolution Foundation and the Centre for Economic Performance at LSE, funded by the Nuffield Foundation – has delivered its Final Report. #LSEResearchForTheWorld #EconomicStrategy

What are the reasons behind the decline of the UK economy? It seems that one of the reasons behind the decline of the UK economy is its full engagement with neoliberal agenda and, more recently, the Brexit economic desaster. Fostering public investment, strengthening organised labour and reducing inequality are good first steps that might work for the UK, as well as for many countries in the World. They both will enhance private investment and productivity!

One in four people of working age are economically inactive in Wales. A high economic inactivity rate can lead to social and economic problems. For example, the capacity of an economy to grow is restricted when the proportion of people not participating in the labour market is high, unless it is offset by an increase in immigration or productivity. In this guest article for Business News Wales, Dr. Edward Thomas Jones, Economics Lecturer at Bangor University asks the question: What Can Be Done to Help Those Who Are Economically Inactive? Read more ➡️ https://bit.ly/3Ubt4H2

🧐 According to economists, Labour’s current policy neglects crucial areas like education and politically difficult issues like migration and international trade, focusing instead on stability and reassurance after years of economic shocks and political decisions like Brexit and austerity, writes Neil Lee. 💡 Labour’s economic policy lacks a grand theory akin to New Labour’s clear vision for growth inspired by engagement with academic economists. Their economic strategy is not so clear now, has limited engagement with Modern Supply Side Economics, and focuses on microeconomics and buzzwords like securonomics and productivism. 📖 Despite this, Labour’s approach is pragmatic and less ideological, and indicates a move towards a more activist state in areas like net-zero and industrial strategy. These pragmatic and interventionist policies are supported by a growing body of industrial policy and regional economics, suggesting the state still has a significant role to play. #Growth #GeneralElection #Labour #Productivity https://lnkd.in/d5mYzdCt

For the past two months, I've been reading "Good Economics for Hard Times" by #AbhijitBanerjee and #EstherDuflo, and it has offered some profound insights on addressing today’s economic challenges. 1. #Rethinking Growth: #Economic growth alone doesn’t solve inequality. #Policymakers must focus on inclusive growth that benefits all sectors of society. 2. #Debunking Myths: Migration, often blamed for economic strain, can positively impact growth if properly managed with sound policies. 3. The Role of #Trust: Building trust between #governments and #citizens is key to implementing effective economic policies. 4. Targeted Welfare: #Social welfare programs work when they are targeted to address real, on-the-ground needs, rather than broad-stroke policies. 5. #BehavioralEconomics Matters: Understanding how people make decisions – often irrationally – can lead to better policy interventions. 6. #Education & #Health as Pillars: Investments in education and healthcare are critical drivers of long-term economic stability. 7. #UniversalBasicIncome (UBI): UBI should be considered as a safety net in economic crises to ensure stability without discouraging work. 8. #Trade-offs in #Policy: No policy is a one-size-fits-all; every economic solution comes with trade-offs that must be carefully evaluated. 9. Tackling #ClimateChange: Addressing climate change is both a moral and economic imperative to ensure sustainable growth. 10. The Importance of Evidence: #Data-driven and #evidence-based policymaking is essential for solving today’s complex economic challenges. By embracing these insights, #economic #strategies can become more resilient, inclusive, and sustainable. #Economics #Development #Strategy #InclusiveGrowth

Georgism is a way of thinking about economics and land use. It is based on the ideas of Henry George, an American economist and social philosopher. Georgists believe that people should have equal access to the benefits of land, which is a natural resource. They argue that the value of land comes from the community, and that this value should be shared equally among all members of society. Georgism proposes a system of taxation that is based on the value of land. This is called a "land value tax" or "single tax". The idea is that people should pay a tax on the value of the land they own, but not on any improvements they make to the land. This would discourage land speculation and encourage the efficient use of land. Georgists believe that this would also promote social justice, by reducing inequality and poverty. Georgism has been influential in many areas of economics and social policy. It has been used to support environmental conservation, urban planning, and social welfare programs. Georgists have also been involved in political movements, such as the Progressive movement in the United States and the Social Credit movement in Canada. Critics of Georgism argue that it would be difficult to implement in practice, and that it could lead to unintended consequences, such as a reduction in the supply of land for productive use. They also question the idea that the value of land is created solely by the community, and suggest that individuals also play a role in creating value. Despite its critics, Georgism remains an important idea in economics and social policy. It continues to be studied and debated by scholars and policymakers around the world, as they search for ways to create a more just and equitable society. Full article: https://lnkd.in/ghSXcAxJ

There is no population plan, at either national or any regional/local levels, that is looking at the impacts of our changing demographics. We have an ageing population that is living longer with complex health and housing needs, migration that results in most people settling in the largest city with already strained infrastructure, and workplaces that are generally not prepared for the workforce coming their way, with the workforce equally as unprepared. Siloed and partisan policy approaches are not resulting in sustainable solutions. Our latest BEV highlights differences in education outcomes for our future workforce, and commentary on the current economic climate.

“Clever” economists know the best way to manage an economy in theory and promote their populist ideas is to attract the attention of a government that knows the only way to get votes is to do something that is well intentioned irrespective of the practical outcome from that action. Those economists who explain that less intervention and more inaction is better for the economy will rarely be heard so here is a brief read comparing the schools that want more and those that argue for less government involvement in economic activity. https://lnkd.in/dhgQG4MY

This is an all important basic subject for studying economics and politics for the next few decades. Without this knowledge, you will be missing foundational information that must supplement almost anything you will talk about when it comes to global issues this century. https://lnkd.in/dA9iPgKD

In a recent article for the The London School of Economics and Political Science (LSE) Business Review, Prof. Giray G. explored the impact that economic uncertainty has on support for far-right populism. In recent years far-right parties such as Reform UK have seen a surge in populist movements in Western Europe. Economic interests are deemed to be a leading driver for political preferences. Economic shocks, such as the 2008 - 2009 global financial crises or Covid-19 drive the popularity of far-right populists as they emphasise economic uncertainties to gain support. Read more: https://lnkd.in/eqRkf3uZ