Fiscal Policy is the use of Government spending and taxation levels to influence the level of economic activity. In theory, fiscal policy can be used to prevent inflation and avoid recession. Fiscal Policy explained But, in practice, there are many limitations of using fiscal policy. Evaluation / Criticism of Fiscal Policy Disincentives of Tax Cuts. …
I’m off to New York on Wednesday, I’m tempted to stay until May 8th, so I can miss the UK General election campaigning, which so far has been quite depressing for the poor quality of economic debate. This is just an outline of some issues for consideration. I may expand upon these in the coming …
Despite high unemployment in the UK, there is a shortage of LGV drivers and it is estimated that the UK will need an extra 150,000 drivers by 2020. In Nottinghamshire, it is estimated that for every nine vacancies there is only one qualified candidate. (link) The average age of a (LGV) Large Goods Vehicle driver …
The other day, I had a quick glance at the newspaper headlines, whilst in a service station. UN Report on global warming states global warming is a real threat to the future of the planet. To contain these changes will require “substantial and sustained reductions of greenhouse gas emissions”. Chancellor announces yet more freezes on …
In the post-war period, consumption of vehicle fuel (petrol / diesel) increased dramatically as car ownership rose and more journeys were made by car. However, since 2007, there has been a significant drop in vehicle fuel consumption, with demand falling over 20% Many factors affect demand for vehicle fuel, including price, income, fuel efficiency, quality …
Readers Question: Also what are the negatives to the Robin Hood Tax that has been suggested and is it akin to the suggested European transaction tax? A ‘Robin Hood tax’ is a popular name for a Tobin tax that was proposed by Nobel laureate James Tobin. Initially, the idea was to place a small tax …
Question: Why do we have a VAT rate of 17.5% on many ordinary goods and a tax rate on petrol / tobacco of over 50% – yet when people propose a tax of 0.01% on currency transactions it is denounced as unfair and economically damaging? At the G20 summit, Gordon Brown, proposed a version of …
(b) Discuss whether high profits and the dominant market share in the banking sector suggests that there should be more government intervention – either through windfall taxes or regulation of prices. (30) British banks are highly profitable. They made a combined profit of £42 bn in 2007. Despite effects of credit crunch, banks have seen …