Politicians often promise tax cuts can lead to higher productivity, higher economic growth, and even pay for themselves through a boost to long-term incomes. These promises may chime with the electorate who tend to prefer promises of tax cuts. But, do tax cuts really increase economic growth? There are two impacts of lower tax. Increasing …
The UK is heading for an energy crisis this winter, with average bills set to rise from £1,100 per year to at least £3,600. And with the possibility of prices rising to over £5,000 in January 2023. The lowest income families may see energy costs rise from 7% to 24% of income. (Link) For better-off …
A recent report by the Bank of England made for grim reading. UK Output is forecast to fall and inflation is predicted to rise to a level not seen since the early 1980s. The UK like many economies is facing short-term pressures – rising energy prices, supply shortages and slowing growth. But, the malaise of …
The UK, along with many other countries, is experiencing a real cost of living crisis with inflation rising faster than average wages. The cost of living crisis is driven by higher transport costs, and energy and food prices, and this is forecast to continue to worsen over this winter. What are the various policies which …
What are the implications of an ageing population? An older population presents many challenges to labour markets, government tax, government spending and the wider economy. The Population Timebomb – How An Ageing Population Will Change UsWatch this video on YouTube One of the great achievements of the Twentieth Century is a dramatic rise in life …
Readers Question: How important is the budget deficit? The budget deficit is the annual amount the government borrow. The government usually financed the budget deficit by selling bonds to the private sector To libertarian and free-market economists, budget deficits are liable to cause significant economic problems – crowding out of the private sector, higher interest …
A look at different methods to reduce budget deficits. In summary, the three main policies are: Cut government spending Increase tax Achieve faster economic growth. A budget deficit occurs when a government spending is greater than tax revenues. This leads to an accumulation of public sector debt. If the deficits are unsustainable, this can cause …
Immigration can give substantial economic benefits – a more flexible labour market, greater skills base, increased demand and a greater diversity of innovation. However, immigration is also controversial. It is argued immigration can cause issues of overcrowding, congestion, and extra pressure on public services. There is also a debate about whether immigration of unskilled workers …