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Economics

Abject nonsense

Its authors, Helen Hester and Nick Srnicek, cite eye-opening statistics. The amount of time we spend on domestic work did not decrease at all between the 1870s and the 1970s. In 1975 American mothers had 37.7 hours of free time a week; by 2008 it had fallen to 31.4 hours.

We’ve also got the latest food book about ultraprocessed etc insisting that exercixse does not use up calories. No, not a claim that we just eat more to compensate, now that muscle weighs more but is more dense than fat – but literally, exercise does not consume calories.

#When we’ve got people actively trying to influence public policy on the back of such idiocy about reality what are we supposed to do? Can’t shoot them all.

Astonishing economic finding

Britain’s largest pension scheme will start investing in gilts for the first time in years, easing pressure on Jeremy Hunt as soaring returns lure some of the biggest funds into snapping up UK debt.

The National Employment Savings Trust (Nest), which looks after the retirement pots of a third of the British workforce, is planning an initial investment of hundreds of millions of pounds after years of shunning UK debt.

Nest’s decision comes after the Bank of England was forced to ramp up interest rate rises to try to keep a lid on inflation, which has proven to be more stubborn in the UK than other large economies.

Change the price and you change demand. Someone could get a Nobel for this…..

Seriously, they’re nutters

The word degrowth stands for a family of political-economic approaches that, in the face of today’s accelerating planetary ecological crisis, reject unlimited, exponential economic growth as the definition of human progress. To abandon economic growth in wealthy societies means to shift to zero net capital formation. With continual technological development and the enhancement of human capabilities, mere replacement investment is able to promote steady qualitative advancements in production in mature industrial societies, while eliminating exploitative labor conditions and reducing working hours.

Why would net zero capital formation do any of that? Technological development (I assume they mean total factor productivity increases) would still deliver both GDP and ohysical economy growth even with net zero capital formation. We’d be right where we are – maybe slower, but in the long term the same.

They’re just throwing words around, aren’t they?

Err, why?

None of this is to deny there are housing problems — too few in the places people want them (which is why we need a better dispersal of jobs and industry),

Why not build the houses where people want them, where the jobs and industry already are?

Idiots, damned idiots

The labour shortage has finally started to raise low end wages. So, people are going to start importing low end labout to lower low end wages again.

Absolute damned idiots:

Thousands of young European waiters, baristas and au pairs could be allowed to come to the UK for two years under plans to plug gaps in the British workforce.

Jesu, the foolishness.

There’s a certain connection here

The average American is 39 per cent wealthier and 38 per cent more productive than the average Brit.

Average wages are determined – no, determined – by average productivity across the economy. As the man (the Nobel Laureate even) said, productivity isn’t everything but in the long run it’s pretty much everything.

As people have been pointing out

Joe Biden’s plans to boost the US microchip industry have been dealt a setback after the opening of a key factory in Arizona was delayed until at least 2025.

Taiwan Semiconductor Manufacturing Company (TSMC), which has been building the plant since 2021, said the start of production would be pushed back from 2024 to 2025.

TSMC chairman Dr Mark Liu blamed the delay on a shortage of qualified US workers, saying there was “an insufficient amount of skilled workers with the specialised expertise required for equipment installation in a semiconductor-grade facility.”

If the trained labour was out there then someone would already have been making semiconductors in the US, right?

No they’re not, don’t be silly

Households are bracing for inflation figures which economists predict will fall to their lowest level since March last year.

Households are doing no such damn thing. Households might be unhappy about suffering the inflation that has already happened and which will be measured, publicly, but they’re not braced for what has already happened.

The Office for National Statistics is expected to reveal tomorrow that the consumer prices index will drop to 8.2pc in June, down from 8.7pc, according to a Bloomberg survey.

However, core inflation is expected to remain at a 31-year high of 7.1pc.

It’s core that matters too, as Ritchie will undoubtedly fail to inform us.

Real wage declines in the scribbling game

If you want to compare the value of a £125.00 Income or Wealth , in 2000 there are four choices. In 2021 the relative:
real wage or real wealth value of that income or wealth is £223.80
labour earnings of that income or wealth is £231.60
relative income value of that income or wealth is £225.30
relative output value of that income or wealth is £257.70

Nominal wages have stayed static in the scribbling game these past 23 years. Meaning that real wages have declined substantuially. As above.

Just a little note to any young whippersnappers thinking about entering it.

Note that this isn’t a complaint, it’s just an observation.

Ah, yes, we have a twat here

The obvious way to deal with this is to introduce rent controls, which are now being employed in Scotland and have been called for by Sadiq Khan in London. Evidence suggests that rent controls are effective in reducing rents, but can lead to a fall in the supply of private rental accommodation. If more such properties are then sold to first-time buyers this may not be viewed as a problem. But given current affordability problems, what the UK clearly needs is more non-market and good-quality socially rented housing.

Err, why not build more housing so that housing is cheaper? You know, that’s how markets work. And by insisting that new housing is non-market of course you prevent market housing from getting cheaper even though you’ve just built more housing.

Twat.

The TUC and, err, economics

Pay rises for the top 10% of UK earners, including City bosses, have clearly outstripped those for the rest of the workforce and been prime drivers of recent inflation and soaring interest rates, according to new analysis of official figures.

Hmm.

Analysis by the TUC of official figures also shows that workers among the top 1% of earners, with an annual income of at least £180,000, were paid 7.9% more than last year, up from 3.7% in January.

By contrast, those who are paid £59,000 a year saw the rate of their wage rises fall from 7.2% to 5.5% a year, while workers receiving £26,300 a year saw an even bigger fall in annual wage rises, from 9.5% in January to 4.7% in April.

Let’s assume that all inflation is from nothing but pay rises. Just to illustrate. Let’s also assume that inflation is 10%.

I get wrid results tryint to work this out but the £180k is top 1%, £59k is top 10% and £26k is median – or we could say the 90%. In the effect upon inflation the 7.9% for the 1% is obviously trivial against the 4.7% for the 90%, no?

So it’s not in fact true that the pay driven inflation is being driven by pay rises for the 1%. Cannot be – they’re 1%, recall?

The man’s wholly and entirely mad

Emmanuel Macron, the French president, called for global taxes on shipping, aviation and potentially on wealth in order to fund climate action. “Help us find all the countries which today have no tax on financial transactions and which today have no tax on plane tickets. Help us to mobilise at the International Maritime Organization [meeting to discuss a shipping tax] in July so that there is international taxation,” he told French broadcast journalists.

Cheap shipping is one of the things that has made those poor countries so much richer. They’re now integrated into the global economy. So, to deal with poverty the damn fool idiot wants to tax shipping?

Is this madness or just the usual French cretinism when it comes to economics?

Sob, sob, sob

No, we’re screwed, truly. Even The Telegraph can’t get this right:

The EU wants its own supply of semiconductor chips, its own lithium gigafactories, and its own indigenous clean hydrogen, whatever the cost, and even when it patently violates the principle of Ricardian competitive advantage.

It’s comparative advantage.

Well, as long as we don’t have to agree with you…..

People who mock ethical stances by businesses are just afraid of change, the boss of Tony’s Chocolonely has said.

Douglas Lamont, chief executive at the chocolatier, which campaigns against slavery and forced labour in the chocolate industry, hit out at critics of the shift towards social purpose and green policies in business.

This is indeed the purpose of a market economy. Do whatever the hell you like. Then see who is interested. If the people are not interested well then, that’s just one of those bright ideas that didn’t work, isn’t it?

The point is here that sure, you should try ethical business etc. As long as you accept that verdict of the market on the idea.

Inflationary spirals

Regular pay excluding bonuses increased by 7.2pc in the three months to April, according to the Office for National Statistics.

The figure was ahead of economists’ predictions of 6.9pc and higher than of an upwardly revised 6.8pc in the previous three months.

Almost, almost, keeping up with inflation. Expect another interest rate rise therefore.