Fortsätt till huvudinnehåll

Chancellor should resign over 10p tax Balls-up

It would be astonishing if the then Chancellor, Gordon Brown, actually intended that low paid workers should end up paying more as the result of abolishing the 10p tax band. And his successor, Alistair Darling should have picked up the potential problem as soon as he took over. Which makes things all the worse.

It would have been the simplest matter to test out the effects of the change on a spreadsheet. The Chancellor presumably did not think of asking his Treasury advisers to do so, and, probably that those advisers failed to suggest that the figures be checked out - unless Darling routinely ignores them.

However this has come about, there is gross incompetence at the highest levels and the Chancellor, and possibly some of the Senior Treasury staff, should be sacked. The most important financial decisions affection the country cannot be left in the hands of people who are numerically illiterate.

Kommentarer

Populära inlägg i den här bloggen

The Zombie Train that refuses to die

The Guardian has published a couple more articles against HS2, one by specialist rail commentator Christian Wolmar, and another today by journalist Simon Jenkins. The main arguments in favour will doubtless be wheeled out by the commentators: the need for capacity and the disruption caused by upgrading existing routes. HST itself will severely disrupt services to Euston during the construction period. Capacity can be increased at a fraction of the cost by a variety of measures, provided that it is accepted that the additional traffic will run at existing speeds. It is not generally known that the Midland main line is, or was, four track all the way from London to Trent Junction, between Nottingham and Derby. This is because the additional tracks are separate, having been added for coal trains which trundled down to Brent sidings, on the edge of London, from a collection point at Toton in Nottinghamshire, where the Midland Railway build a huge marshalling yard. Beyond Derby, the main l...

Importing people to sustain demand

I got involved in a discussion with a Youtuber called “Philosophy all along”. This was in connection with criticism of Trump’s policy of deporting illegal migrants, which he argued would be bad for the economy as it would reduce demand. This implies that there is a need to import people to sustain demand. There is no obvious reason why a population should not be able to consume everything that the same population produces. If it can not, then something else is going on. It is a basic principle that wages are the least that workers will accept to do a job. Wages are a share of the value added by workers through their wages. The remainder is distributed as economic rent, after government has taken its cut in taxes. Monopoly profit is a temporary surplus that after a delay gets absorbed into economic rent. Land values in Silicon Valley are an example of this; it's like a gold rush. The miners get little out of it. Rent and tax syphon purchasing power away from those who produce the g...

Beyond electrification

In an earlier post I suggested a core list of lines which ought to be in an electrification programme spread over twenty years of so. This leaves a residue of routes which it is unlikely will ever be electrified. This include for example All lines beyond Glasgow, Stirling and Aberdeen All lines west of Exeter and Swansea All lines west of Chester Shrewsbury - Chester Everything not listed in my previous blog - electrification plans only scratch surface   Some of these routes carry main line services to London and other cities on parts of the network that are already electrified or included in electrification plans. Others are self contained and others carry light traffic - less than a dozen trains a day. The current plan is that main line services will be operated with the hybrid trains on order from Hitachi, but this is a costly, wasteful and ineffective solution. The performance of the trains will be inferior to the present Inter-City 125 trains on non-electrified lines and the ...