Macroeconomics: UK economy, IB Economics
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Macroeconomics: UK economy, IB Economics
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A brief overview of relevant articles for IB and A-Level all relating to the UK economy
Curated by Graham Watson
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The Guardian view on big finance: addicted to government handouts | Editorial | The Guardian

The Guardian view on big finance: addicted to government handouts | Editorial | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
From www.theguardian.com - October 20, 2022 2:46 AM
Editorial: Instead of cutting public services, the Treasury should tax the windfall profits of the banking sector
Graham Watson's insight:

The Guardian editorial makes an interesting suggestion - a windfall tax on the banking sector. They argue that, since 2008, the sector has relied on state handouts to prop them up, and taken the opportunity to make big profits for much of that time too. 

 

So why should shareholders have benefitted at the taxpayers' expense? And if the state has committed to bail the sector out, to what extent does that perpetuate moral hazard issues in the sector, itself prompting ever greater risk-taking. 

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The universal credit cut is the end point of years of ‘welfare’ cruelty | John Harris | The Guardian

The universal credit cut is the end point of years of ‘welfare’ cruelty | John Harris | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
From www.theguardian.com - October 4, 2021 4:33 AM
The loss of the ‘uplift’ will have awful results. But with even Tories supporting the backlash, could this be the moment things change, asks Guardian columnist John Harris
Graham Watson's insight:

John Harris looks at the implications of the removal of the temporary uplift in Universal Credit, and the fact that even some Conservatives are opposed to it. 

 

He sees this as a chance to forge an uneasy coalition to push for greater redistribution and 'fairness' in the UK economy. 

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Scooped by Graham Watson
Scoop.it!

There’s a simple way to fight the cost of living emergency: a £15 an hour minimum wage | Nadia Whittome | The Guardian

There’s a simple way to fight the cost of living emergency: a £15 an hour minimum wage | Nadia Whittome | The Guardian | Macroeconomics: UK economy, IB Economics | Scoop.it
From www.theguardian.com - June 8, 2022 10:50 AM
Opponents say this will lead to a wage-price spiral – but that’s an argument that’s stuck in the 1970s, says Labour MP Nadia Whittome
Graham Watson's insight:

Despite this article featuring lots relating to a minimum wage, I've put this Guardian article here because it's real focus is the cost of living crisis. 

 

In it, Nadia Whittome, a Labour MP, argues for a £15 minimum wage suggesting that critics who see it as fuelling a wage-price spiral are wrong-headed.  She argues that not only can firms afford it, but it will save the Treasury money in reducing benefit payments, and would simply see a redistribution of profits away from executive pay and in favour of the pay of ordinary workers. Superficially, it has appeal but you'd worry about how increasing the minimum wage would trigger further pay increases in other areas, and unfortunately, I also don't see executive pay coming down any time soon.

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