Weaker economies should be allowed to leave the Euro

11 August 2011

In response to Osborne’s statement on the Eurozone and UK’s recovery.

Dr Eamonn Butler, Director of the Adam Smith Institute, says:

On greater fiscal integration in the Eurozone

“Greater fiscal integration in the Eurozone may be the only way to keep the Euro together. But few people in Europe, apart from its leaders, actually want to be part of a tax and welfare union. It would be better to let the weaker economies leave the Euro. Unfortunately the Euro is a political project rather than an economic one. But you cannot defy economic reality forever. It is bound to split, and Britain should be trying to make sure that happens in a measured way rather than as another crisis. And we should be urging that European governments need to do much more to balance their books and get out of debt – which is the whole reason why markets have ceased to trust governments and central bankers.”

On this autumn’s growth agenda

“The Chancellor's promise of further action on the growth agenda this autumn is now vital. He should start by lowering company taxes and national insurance, both of which make firms hesitate to take on workers. The 50p tax rate should be abolished, because it simply drives investment abroad. And most regulation on the smallest firms should be scrapped entirely.

“Claims that the UK recovery have been 'choked off' by public spending cuts are plain daft. The public sector is the least productive part of the economy – indeed, its productivity has been falling. If we are to get out of our debt hole, we must lift the burdens on the private sector, which is our only hope of economic growth.”

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PM, Radio 4: Are politicians to blame for market turmoil?

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Old Teaser

8 August 2011

Dr Eamonn Butler went on Radio 4's PM programme to discuss the turmoil in the financial markets and the need for governments to get to grips with their economic policies. Eamonn argues that the markets have lost faith in the ability of politicians to sort the mess out. Governments must make plans to pay off their debt, have honest money and live within their means.

You can listen to him here (at around 35mins into the programme). 

Jeremy Vine Show: growth and the recession

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Old Teaser

26 July 2011

Tom Clougherty went on BBC Radio 2's Jeremy Vine Show to discuss Britain's poor economic growth figures, arguing that we don't need a 'Plan B' – in fact, all we need is for the government to maintain a stable monetary environment, and then get out of the way as markets adjust.

You can listen to him here (about 5 minutes into the programme).

CNBC: Tom Clougherty on the phone hacking scandal

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Old Teaser

20 July 2011

Media plurality depends on reform of the BBC

Published in ConservativeHome here.

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Old Teaser

16 July 2011

Sam Bowman argues in ConservativeHome that News International size and influence is a direct consequence of its even larger rival, the BBC. Until the BBC is reformed we will not have media plurality in the UK.

Free bank shares for all is a very bad idea, Nick Clegg

Published in Guardian.co.uk here. 

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Old Teaser

23 June 2011

Dr Eamonn Butler explains in The Guardian why Clegg's proposals to give voters a share in the state-owned banks is a well meant but terrible idea.

Ed Balls’ suggestion of a temporary VAT cut is pure politics - and bad economics

Read his article on ConservativeHome here.

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Old Teaser

16 June 2011

Tom Clougherty argues on ConservativeHome that Ed Balls's proposals to introduce a temporary VAT cut to boost economic growth would in fact do nothing to inspire confidence or stimulate growth.

Balls’ VAT cut won’t boost confidence or growth

16 June 2011

In response to Ed Balls' proposals for an emergency VAT tax cut:

Tom Clougherty, Executive Director of the Adam Smith Institute, says:

“How ironic that Ed Balls – the man who wanted to extend the reach of the deeply anti-growth 50p tax rate – has suddenly decided that tax cuts would boost the economy. 

“But today’s announcement is pure politics. A temporary cut in VAT would do little to boost confidence or growth. People aren’t fools – they know that you can’t just borrow more, spend more, and raise less without it coming back to bite you further down the line. 

“A growth agenda that coupled lower taxes with less red tape and less wasteful spending would be a good thing. But the shadow chancellor’s reckless, have-your-cake-and-eat-it too approach to the economy would do nothing except march Britain further down the road to a sovereign debt crisis. It would damage confidence, not boost it, and destabilise the economy, not stimulate it.”

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Public sector strikes

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Old Teaser

15 June 2011

Dr Eamonn Butler talks on Radio Five Live's Tony Livesey programme on why public sector workers shouldn't be striking over government cuts. The public sector should share some of the burden.

You can listen to him here (the discussion starts around 23mins in)

Taxes hinder recovery

Read in the Daily Telegraph here.

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Old Teaser

8 June 2011

Dr Eamonn Butler writes a letter to the Daily Telegraph signed by leading academics and economists.