Even while the economy is recast for today’s pandemic on the back of the dismal failures of the past decade, austerity is already rearing its ugly head. At one level there must be politics here. The public must not be allowed to think that socialising the economy to meet a pandemic means the economy might be socialised when the pandemic is over. Likewise, obsessing about excessive debt means the greatly more pressing and more dangerous reality of deficient expenditure is side-lined. But it’s...
Read More »UK GDP – the Q2 close-down, and the distorting effect of ‘imputed rental’
On Wednesday (30 September) the Office for National Statistics published its second estimate of GDP for the second quarter of 2020, April to June. The very marginally positive news is that the fall, between Q1 and Q2, was reduced from 20.4% to 19.8%. Since this was still the largest recorded quarterly fall since records commence in 1955, this is hardly a cause for jubilation – and even less so since the Q1 drop was raised from -2.2% to -2.5%. As we discuss below, the position would...
Read More »UK GDP – the Q2 close-down, and the distorting effect of ‘imputed rental’
On Wednesday (30 September) the Office for National Statistics published its second estimate of GDP for the second quarter of 2020, April to June. The very marginally positive news is that the fall, between Q1 and Q2, was reduced from 20.4% to 19.8%. Since this was still the largest recorded quarterly fall since records commence in 1955, this is...
Read More »This time, Mr Sunak has got it wrong
Till now, I have supported much of what Chancellor Rishi Sunak has put in place, as measures to help the economy through the pandemic. The furlough scheme has proved its worth. But today’s measures are inadequate and disappointing. The new Job Support Scheme, under which the government will pay some 22% of the wages of employees who work at least one third of their usual hours. This compares with the 60% of wages to be paid by the government in October, the last month of the furlough...
Read More »This time, Mr Sunak has got it wrong
Till now, I have supported much of what Chancellor Rishi Sunak has put in place, as measures to help the economy through the pandemic. The furlough scheme has proved its worth. But today’s measures are inadequate and disappointing. The new Job Support Scheme, under which the government will pay some 22% of the wages of employees...
Read More »Commercial property: * Prêt a Payer *, or Prêt-à-Fermer?
The government wants us to return to our office workplaces in the cities. The FT tells us:“The government will [this] week launch a media campaign to encourage more employees back to their workplaces amid growing concern in Downing Street over the rising number of job losses at service businesses in city centres that are reeling...
Read More »Commercial property: * Prêt a Payer *, or Prêt-à-Fermer?
The government wants us to return to our office workplaces in the cities. The FT tells us: “The government will [this] week launch a media campaign to encourage more employees back to their workplaces amid growing concern in Downing Street over the rising number of job losses at service businesses in city centres that are reeling from a lack of customers. And from Sky News (Aug 20): “Just one in six workers have gone back to work in cities this summer after companies and staff ignored...
Read More »Remembering John Weeks
Late last month, pioneering socialist economist John Weeks passed away. Ann Pettifor remembers her colleague and friend – and his contributions to left-wing politics. This piece first appeared in Tribune magazine on 08 August, 2020. Please note correction at the end of this piece. John Weeks, brilliant Left economist and public intellectual, would have been well pleased that three days after his death the Financial Times published a letter he had signed attacking the Office for Budget...
Read More »What went wrong at intu?
In June this year, a company called intu (no capitalisation) collapsed. Most people had never heard of it. But they knew what it did. It was the owner of many of the UK's biggest shopping centres. Lakeside in Thurrock, Metro Centre in Newcastle, and the Trafford Centre in Manchester - all of these were owned by intu. Indeed, they still are. At the time of writing, no disposals have been made. So intu is the landlord of a significant part of the UK's retail sector. And it is dead, killed by...
Read More »What went wrong at intu?
In June this year, a company called intu (no capitalisation) collapsed. Most people had never heard of it. But they knew what it did. It was the owner of many of the UK's biggest shopping centres. Lakeside in Thurrock, Metro Centre in Newcastle, and the Trafford Centre in Manchester - all of these were owned by intu. Indeed, they still are. At the time of writing, no disposals have been made. So intu is the landlord of a significant part of the UK's retail sector. And it is dead, killed by...
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