Author: Tejvan Pettinger

uk-national-debt

What has borrowing ever done for me?

A reader on twitter asked – How has government borrowing helped me recently? I’m tempted to paraphrase as – What has borrowing ever done for me? – just so that I can make a reference to Monty Python and the Life of Brian? – And what have the Romans ever done for us? – apart from education, sewers, wine, roads, peace, law and order  … (youtube) I’ve answered this question several times before: Why does the government borrow? Should government’s borrow But, I frequently get asked…

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Is it so bad to leave the Euro?

Leaving the Euro is supposed to be irreversible. If a country did threaten to leave the Euro – it was argued it would lead to bank runs, loss of confidence, high unemployment and a serious recession. But, what if you already have all of these components? The Greek economy is in dire state. Furthermore, their main creditors are behaving with tremendous short-sightedness, ignorance or either vindictiveness. This is trying to put it politely. Given how disastrously unsuitable the Greek economy has been in the Eurozone straight-jacket, now is the opportunity to take back…

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A short note on Greece

Just a short note on Greece because at the moment I’m concentrating on writing revision guides. For several years I have felt that Greece would be better off to leave the Eurozone. This is partly due to economics, but also partly an intuition – that there is no greater recipe for political disaster than having disastrous economic policies dictated by a foreign power (EU, IMF, Germany) The frustration in Greece at Europe is well-merited. Leaving the Eurozone will perhaps make Greece masters of their own destiny. They will not feel they are…

New AS Economics – Edexcel revision guide

New AS Economics – Edexcel revision guide

I have just finished the new version of AS Edexcl economics revision guide. It is updated for the new syllabus, which will be used for first exam in 2016. The Edexcel AS revision guide is 108 pages, 20,800 words. More details here: AS Edexcel Revision Guide £5.00 Network license for schools For schools, I am making available as a network license allowing unlimited use, with word doc. Coming soon I will be finishing A2 revision guide. I will soon be bringing out revision guides for…

Effects of a budget surplus

Effects of a budget surplus

The chancellor George Osborne has recently announced a plan to enshrine budget surpluses in law. It is worth noting, that budget surpluses are quite rare in the past 120 years. The argument of the chancellor is that with national debt ‘unsustainably high’ – periods of economic growth should be taken as an opportunity to pay down debt and reduce the burden for future generations. What is the impact of a budget surplus? 1. Higher taxes / lower spending. To ensure a budget surplus,…

Can Labour be blamed for the economic crisis?

Can Labour be blamed for the economic crisis?

Readers Question 1. Can Labour be blamed for the economic crisis (i.e. did they really ‘overspend’)?  My view is that the global economic crisis is to blame, and that Labour could have spent less but that this is easy to say with the benefit of hindsight. I don’t think there is any economist who would try to blame the global financial crisis and global recession on the fact the Labour government increased spending on the NHS / education by a relatively moderate amount. The global recession of 2008-13 was caused by…

Revision-Guide-AS-A2

New economics AS and A2 syllabus

There has been an update to the economic syllabus for those taking A2 exams in 2017. It means that students starting to study Economics AS in Sept 2015, will be doing the new syllabus, with first AS exams in June 2016, and the first A2 exams in June 2017. Students who have already started economics AS this year, will be unaffected and they will continue with the existing syllabus. Major changes AS and A2 will be linear. AS exams will not count towards final A2…

UK-unemployment

Problems facing UK economy in 2015

Reader Question: What Are The Macro-Economic Problems Faced In UK In 2015? And What Are The Reasons And Causes? Only time for a quick answer. Off the top of my head 5 problems for UK economy Low economic growth Low productivity growth Budget deficit / perceived need to cut deficit. Low wage growth Unemployment   1. Low economic growth This might not be most obvious because UK has experienced a recovery in the past two years. But, the economic recovery is still weak, with…