This was an enjoyable, but politically charged interview. I did not realise that Mr. Blanchflower was a hard left socialist. His presentation of the socialist Labour government as heartless and unthinking in its attack on the poorest in society is a misrepresentation. Note that Britain’s long term reputation for liberalism and welfare generosity is so strong that illegal immigrants who could apply for citizenship after landing in Europe (as they are supposed to) choose to leave from Calais, paying a small fortune to criminals, risking their lives in order to get a rubber dinghy, along with children, across the English Channel to Britain. This culture of liberalism is also more broadly represented in a benefits culture that disincentivises work, or at least allows benefits to be claimed without significant pressure to get back to work. This culture has, as he intimates, become more endemic in British society following covid. I suspect that the Labour government is trying to change that culture by making it harder to claim benefits without proving that a person is genuinely unable to find work, rather trying to penalise genuine claimants. Perhaps one can call this ‘tough love’?
To some extent, the Labour government's cost management in the face of lower long-term GDP growth, mirrors Trump’s cost cutting. One might even suggest that Trump’s actions catalysed the UK’s labour government to follow in his footsteps.
Blanchflower’s suggestion that the Bank of England will cut interest rates in order to offset a second version of austerity is interesting. I note that long term gilts currently have a rising yield, more so than US treasuries, suggesting that the market disagrees with him. Perhaps he is right?
The UK and US housing markets appear to be moving in different direction for once, suggesting that this time is different from last time i.e. perhaps not simply rates cuts, asset inflation and a continuation of the last 20 years of artificial support.
This was an enjoyable, but politically charged interview. I did not realise that Mr. Blanchflower was a hard left socialist. His presentation of the socialist Labour government as heartless and unthinking in its attack on the poorest in society is a misrepresentation. Note that Britain’s long term reputation for liberalism and welfare generosity is so strong that illegal immigrants who could apply for citizenship after landing in Europe (as they are supposed to) choose to leave from Calais, paying a small fortune to criminals, risking their lives in order to get a rubber dinghy, along with children, across the English Channel to Britain. This culture of liberalism is also more broadly represented in a benefits culture that disincentivises work, or at least allows benefits to be claimed without significant pressure to get back to work. This culture has, as he intimates, become more endemic in British society following covid. I suspect that the Labour government is trying to change that culture by making it harder to claim benefits without proving that a person is genuinely unable to find work, rather trying to penalise genuine claimants. Perhaps one can call this ‘tough love’?
To some extent, the Labour government's cost management in the face of lower long-term GDP growth, mirrors Trump’s cost cutting. One might even suggest that Trump’s actions catalysed the UK’s labour government to follow in his footsteps.
Blanchflower’s suggestion that the Bank of England will cut interest rates in order to offset a second version of austerity is interesting. I note that long term gilts currently have a rising yield, more so than US treasuries, suggesting that the market disagrees with him. Perhaps he is right?
The UK and US housing markets appear to be moving in different direction for once, suggesting that this time is different from last time i.e. perhaps not simply rates cuts, asset inflation and a continuation of the last 20 years of artificial support.
An interview well worth listening to.