Economics Archives - Page 14 of 15 - Emile Woolf writes

Public finances: tax rises are not the answer

Promises, promises….. New Labour’s pledges in three elections running included a commitment not to raise taxes. All three manifestos declared: “There will be no return to the penal tax rates that existed under Labour and Conservative governments in the 1970s. To encourage work and reward effort, we are pledged not to raise the basic or […]

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Time for a reformed regulatory framework – auditing included

Time for a reformed regulatory framework – auditing included   The economic collapse is merciless in its revelations of failure, whether evidencing spineless regulation, ignorant policy-making, ineffective auditing, incompetent rating or wimpish governance. There’s nowhere to hide – as Warren Buffett puts it, when the tide goes out you can see who’s been bathing naked. […]

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Now we know: the ‘booming’ economy was a huge Ponzi scheme

Now we know: the booming economy was a huge Ponzi scheme Bernard Madoff’s $50 billion Ponzi fraud is now legendary. Yet the fabric on which our entire credit explosion rested was just as illusory as Madoff’s investment fund. It existed in appearance only. The toxic financial instruments, so neatly packaged by investment houses before being […]

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Getting the economy going: cut public sector waste and transform taxes

Getting the economy going: cut public sector waste and transform taxes By now the causes of the economic crisis, and the course of its swift global trajectory, have been explored ad nauseam. But while its bitter consequences are being experienced for a year or three there is much that governments can learn from enforced austerity. […]

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The great credit collapse: what have we learnt

  Sir Thomas Gresham was a formidable figure in the late 16th Century. He built the Royal Exchange, the most fabulous commercial building of its day. Modeled on the Antwerp Bourse, it contained 150 small shops, making it one of the world’s first shopping malls. Yet its chief virtue was that, for the first time, […]

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Banks deserve our opprobrium: they have forgotten all basic principles

Banks deserve our opprobrium: they have forgotten all basic principles   The Chinese Sage Lao Tsu wrote, on the subject of government, that in the golden age people do not even know they are being governed; in the silver age they revere their leaders; in the iron age they respect them; and in the age […]

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Where have all the losses gone? There are no corresponding gains!

I have always assumed that gains and losses balance out in the big picture, assuming the lapse of sufficient time.  If I sell an investment for less than I paid I incur a quantifiable loss.  This does not mean that whoever buys it will make a profit since he too may sell for less than […]

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Over-taxed & over-regulated – that’s the reality, whatever they say

Few would disagree that UK business is both overtaxed and over-regulated.  Those at the sharp end know this, despite all the efforts of official statisticians and bureaucrats to tell us otherwise. The Treasury would have it that Britain is becoming more competitive and overtaking rival economies, whereas the CBI argues that higher taxes and obsessive […]

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Borrowers must face the reality of their choices

Since gaining its independence from the Treasury 10 years ago the Bank of England’s pledge to control inflation as its overriding priority has, until now, been visibly honoured and we have all benefited. Unlike the Treasury, however, the Bank’s sole weapon in fulfilling its mission is its autonomy over setting interest rates, and the present […]

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Desperate measures: if it moves, tax it

The purpose of taxation is to pay for the necessary expenditure of government.  Adam Smith spelt out the basics 200 years ago:  the manner in which taxes are raised and spent must be transparent, visible for all to see.   The journey from first principles to contemporary reality leads to a fiscal statute book of […]

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