Philip Hammond’s ‘Tiggerish’ delusions

A few months of better productivity figures and a whole 0.1 per cent upgrade in the Office for Budget Responsibility’s growth forecast for this year is not much to be positive about. Yet under instructions from the prime minister, chancellor Philip Hammond presented a more upbeat, ‘Tiggerish’ side of himself at his first Spring Statement, and announced that there was ‘light at the end of the tunnel’ in Britain’s elusive recovery from the financial crisis of 10 years ago.

It didn’t take long for critics to accuse the chancellor of complacency.

Read the full article here

After Carillion: we need to end zombie capitalism

The liquidation of Carillion, Britain’s second largest construction company, is extremely worrying for its 43,000 workers and their families worldwide, of whom 20,000 live in Britain. This big government contractor going bust means damaging disruption not just to its own employees, but also to its many suppliers and their employees. And it is bad news, too, for the many more thousands relying on Carillion for their pensions. Unfortunately, though, much of the initial political and media reaction has been too narrow to learn the lessons from this calamity. The state has been propping up business and making life more precarious for workers.

Read the full article here.

Sorry, Corbyn, but ‘anti-austerity’ is not enough

Another unexpected election result, this time brought about by Theresa May’s patronising, ill-considered and visionless campaign, invites traditional as well as new thinking. And when an election outcome is inconclusive, it becomes even easier to read into it your own established opinions. One interpretation, as suggested by Labour Party figures in particular, but also by some Tories, is that this was a vote ‘against austerity’. Of course, many people have in recent years been experiencing more sharply the material effects of our longest economic depression. But it is fanciful to assess the result as a positive vote against austerity.

Read the full article here.

May’s industrial strategy will fail unless it clears out zombie firms

My opinion piece for City A.M. arguing that in order to generate a new dynamic for economic growth, government has first to stop propping up the zombie economy. The application of many regulations, of government spending and procurement policies, changes to insolvency rules, easier monetary policies – all these and more have acted to support incumbent businesses. The full article is here.

Foster new sectors

I have submitted a Response to Questions 1 and 2 in the Green Paper Building our Industrial Strategy (Department of Business, Energy, and Industrial Strategy, January 2017). The submission can be read here.

This is part of a collective submission from the Institute of Ideas Economy Forum called ‘Go for Growth’, available here.

What my new book is about

Creative destruction: How to start an economic renaissance

To be published on 29 March 2017 by Policy Press

The mature economies have been stuck in a long, contained depression since the 1970s. The pressing question that arises today is not why investment and productivity have been so weak, important though that is. Rather it is whether we are hitting the limits of effectively muddling through this dismal reality. The financial crash of 2008 was the first significant indicator that sustaining reasonable living standards could no longer rely on an ever-expanding financialised debt economy. The subsequent recession was one of the sharpest since the 1930s but thankfully the system’s collapse was avoided. Can we expect to be as fortunate when today’s bubbles burst? Continue reading