Macroeconomics: UK economy, IB Economics

Evidence of government failure? Or merely wasteful public spending? Either way the former head of the Serious Fraud Office is of the view that the ability of the government to keep track of public spending and counter fraud is being decreased by a number of factors, not least a lack of organisational capacity. It's very much in keeping with the theme of my current reading, Marianna Mazzucato and Rosie Collington's "The Big Con".

Today's big story is about the possibility of a public sector pay freeze - with there being a debate about whether such a scheme can be squared with a massive boost in military spending. 

And the billions of pounds spent on giving one's associates PPE contracts. 

And here's a little bit of insight into the uptick in inflation - the costs of personal protection equipment (PPE) in the service sector has been passed on to consumers in the form of higher prices.

But the question that I pose for my soon-to-be Year 13 economists is: can you draw it? How would this be reflected in an AD-AS diagram?

I'll just leave this here - Polly Toynbee is on fine form, polemic of the first order. 

It's up to you as to whether or not you think that she's got a valid case or not. 

I'm just going to leave this here - I hope that in the fullness of time, this becomes a major issue because it hints at serial impropriety and completely undermines the notion that "We're All In This Together".