Yesterday I wrote about the ridiculous wealth tax that was proposed by the UK Green party to be levied on wealth over £3M.  But as anybody who has ever taken Econ 101 knows that no government and country can either tax or spend itself into prosperity. Art Laffer recently gave a lecture at the Institute […]

tax the rich

The UK Green party has called for a wealth tax of up to 2% on the assets of “multimillionaires” that it believes could raise more than £40bn a year. Presenting the proposal, Natalie Bennett, the Green leader, said other political parties only offered minor tweaks to the UK’s failed economic system, instead of major changes […]

Does inequality matter was discussed today at Institute of Economic Affairs/Bloomberg conference. The conclusion was that it does if it hinders social mobility as a meritocratic society should seek to provide people equality of opportunity. In addition, income that is accrued by rent seeking behaviour where individuals, firms, and unions exploit the state for personal […]

Professor John B. Taylor, Mary and Robert Raymond Professor of Economics at Stanford University and the George P. Shultz Senior Fellow in Economics at Stanford University’s Hoover Institution, gave the 2014 IEA Hayek Memorial Lecture on “Policy uncertainty and economic growth – lessons from the Great Recession for the US and UK”. Professor Taylor’s academic […]

I have been a big fan of Allister Heath, the editor of CityAM.  Allister is a journalist who has an admirable command of economics and he writes with lucidity and conviction.  The following is his last column as he steps down from CityAM, one of the UK’s few free market papers. Britain needs to learn to love […] In an interview with ieaTV, Prof Richard Epstein, Professor Emeritus of Law and Senior Lecturer at the University of Chicago Law School, assessed the impact of Piketty’s recent bestseller, Capitalism in the Twenty-First Century, on the US debate on inequality. Epstein highlights his belief that in the long-term it will not prove persuasive and […]

Much ink has been spilled on lamenting or celebrating the demise of capitalism, depending on one’s view, of course.  I don’t particularly like the word ‘capitalism’ as it has become laden with negative connotations.  Rather, I prefer talking about economic freedom and liberty, or “freedom economics,”  that is based on the system of free markets […]

Trust within organisations and of organisations is in short supply.  Trust could be a basis of competitive advantage. The first step is to get your people to trust you and making them feel safe is the first step. Safe is not cutting people as soon as there is a dip in the economy. Safe is […]

All firms will become disrupted at some point in time.  Historical evidence shows that only 20% of companies are able to maintain above average industry level profitability over an extended period of time.  Moreover, once a firm loses its leadership position only 6% of these companies will ever be able to regain their lost industry […]

Yesterday I wrote to question Ed Balls’ and the UK Labour Party’s call for 50% top income tax rate as a tribalist political move that was completely divorced from any sane economic justification.  The post generated a great deal of debate. For the record, as an academic I do not earn more than £150,000 per year. […]

The UK Labour Party’s shadow chancellor Ed Balls announced yesterday that the party would reinstate the 50% tax level imposed by Gordon Brown at the height of the financial crisis should they win the 2015 general election.  Mr Balls stated that the new top-level of tax on earnings above £150,000 would “help balance the nation’s books […]

Larry Summers attacks George Osborne’s austerity programme in Davos.  According to Summers the UK austerity programme lacks credibility and the Chancellor should have followed US lead in deficit reduction.  Ho hum….let facts speak for themselves. More about this here:

I have always intuitively known that ‘Big Society’ is alive and well in the US.  Prime Minister David Cameron tried unsuccessfully introduce the concept in the UK when he was elected leader of the Conservative party. The ideas of compassion, charity, neighbourliness, and voluntary service are alien concepts in a society that has been long conditioned […]

The  International Monetary Fund (IMF) is forecasting the UK economy to grow by 0.9% this year.  The number itself is pathetic, but what makes it worse is that this growth is mainly statistical, utterly sustainable as it is driven by loose monetary policy that fuels domestic demand that domestic productive supply-side is not able to meet. […]

There is mounting academic evidence that lower tax rates are better for economic performance.  The latest study comes from Cornell University’s Karel Mertens. Mertens’ brilliant working paper published by the National Bureau of Economic Research provides evidence that high tax rates are detrimental for economic performance. The paper estimates the dynamic effects of marginal tax […]