Readers Question: I watched the recent Channel 4 (I think) programme on the National Debt. In this Programme it gave an all inclusive figure of £4.8 Trillion. How can this be squared with the very much lower figures given on your site? I haven’t had chance to see Channel 4’s recent programme on National Debt. …
“Don’t Panic, Captain Mainwaring.” – Dad’s Army The famous catchphrase could perhaps be adapted to UK debt levels. The 1940s and 1950s, were an example of high debt, but, it didn’t cripple the UK economy, the 1950s proved to be a decade of full employment and was one of the longest periods of economic expansion …
Two alternative views on UK’s debt problem. Debt Hawk Source: ONS The UK has seen a rapid deterioration in its budget deficit. At £146bn (12.5% of GDP) this is the biggest peace time budget deficit on record. (Apart from Greece) this leaves the UK with the largest annual budget deficit in the OECD. Given the …
The coalition expects 490,000 public sector jobs to be lost by 2014-15 as a direct result of its drastic spending cuts, Danny Alexander, the chief secretary to the Treasury, has accidently disclosed. (link to Guardian) In addition the spending cuts, wage freezes and job losses will have a knock on effect to the rest of …
Readers Question: Where is the US economy headed? Is it inflation or depression? Recently, Goldman Sachs predicted a rough year ahead for the US Dollar. They forecast the dollar may fall against Pound Sterling to $1.85 in 12 months. Against the Euro, they forsee it to fall to $1.55 in a year’s time. Exchange rates …
Readers question: Nor do I understand how they can weaken their currency through government intervention, if they are not intervening. Is it only US that is complaining about the value of the Yuan? The main thing is that Chinese Central Banks, with the support of the Chinese government are purchasing foreign assets, such as US …
For many goods we expect the price to be determined by market forces – by supply and demand. For example, computers, cars, holidays, food e.t.c. However, there is another class of good where society dislikes the idea of prices being set by market forces. The best example is football tickets or Concert tickets. . In …
Readers Question: Is the economic demand for a particular product determined solely by its usefulness? Traditional economic theory suggests we buy goods depending on whether we feel it gives a utility sufficiently high to justify the price. As the price rises, we tend to buy less. Last week, I wrote about my experience of buying …