Economics

The October Budget was Reeves’s original sin

With hindsight, Rachel Reeves’s first Budget in October last year looks even worse than it did at the time. It wasn’t exactly cheered to the rafters then, even by Labour’s own mass of backbenchers, but a year on it has become clear that those early decisions have damaged the country’s economic performance and blighted Reeves’s time in the Treasury. The Chancellor has been somewhat unlucky, to be fair, but she made three crucial errors in the October Budget. First, she did not give herself enough slack if the economy took a turn for the worse. Second, she forgot that economics is not only about numbers but also about mood. Third,

Progress is destroying the planet: the rants of a self-hating American

In what may be the only joke in this book – it is hard to tell, because quite often reading it I started to believe the whole thing was an elaborate parody – Samuel Miller McDonald begins his acknowledgements by expressing his ‘infinite thanks’ to his editors (he merits six of them) on the grounds that ‘no work can be good without good editors’. Apparently some works can’t be good even with good editors – unless the author is trying to tell us that his, like his oeuvre, weren’t especially good at all. Progress is a prolix, tendentious book, radiating self-regard, arrogance and flannel. One irritation (which became like waiting

How the Bank broke Britain, Zelensky’s choice & the joys of mudlarking

49 min listen

First up: how the Bank of England wrecked the economy Britain’s economy is teetering on the brink of a deep fiscal hole, created by billions of pounds of unfunded spending – never-ending health promises, a spiralling welfare bill and a triple lock on the state pension, which will cost three times as much as originally estimated. Although politicians ‘deserve much of the blame for the economic state we’re in’, it’s Andrew Bailey – Michael Simmons argues in the magazine this week – who ‘has enabled their recklessness’. He joined the podcast to discuss who really broke Britain with Kate Andrews, Deputy Editor of The Spectator’s world edition and former Economics

The rich are fleeing – what next?

Keir Starmer is worried about who’s coming into the country. This week, he launched a white paper with the aim of cutting migration. Britain risks becoming an ‘island of strangers’, he said. However, it’s not just arrivals that should give him sleepless nights. It’s the number of people in the departures lounge too. London’s private members’ clubs, top schools, luxury car dealerships and estate agents are all grappling with the same problem: their customers are fleeing the country. Since 2016, almost 30,000 millionaires have left Britain – an outflow unmatched in the developed world. They are either returning home or moving abroad. The reason is a slew of tax changes

Trump shock, cousin marriage & would you steal from a restaurant?

39 min listen

This week: Trump’s tariffs – madness or mastermind? ‘Shock tactics’ is the headline of our cover article this week, as deputy editor Freddy Gray reflects on a week that has seen the US President upend the global economic order, with back and forth announcements on reciprocal and retaliatory tariffs. At the time of writing, a baseline 10% on imports stands – with higher tariffs remaining for China, Mexico and Canada. The initial announcement last week had led to the biggest global market decline since the start of the pandemic, and left countries scrambling to react, whether through negotiation or retaliation. China announced a second wave of retaliatory tariffs – to

Kate Andrews

Impeccable history of the free market – and from the BBC too

The launch of Radio 4’s Invisible Hands series has been both blessed and cursed by timing. It tells the story of Britain’s ‘free market revolution’, just as President Donald Trump overhauls the free trade consensus of the past 40 years and world leaders grapple with how to respond. The problem is the hypotheticals posed at the start of the first episode – that free market capitalism ‘might be in crisis’; that ‘the global free market might be under threat’ – are already out of date. It’s settled. Free trade is out, tariffs are in. Welcome to the trade wars. The world could do worse than look to the ‘Invisible Hands’

Reversing our economic decline is not easy, but it is simple

Our immiseration came swiftly and stealthily. At the start of the 21st century, Britain was a prosperous country. Ambitious people fought to come here. We trusted that, over time, we would become wealthier – an expectation that had been accurate for most of the previous two centuries. Since the millennium, Britain and western Europe have pretty much stopped growing – especially if we ignore the impact of immigration and calculate GDP per head. Reversing this slowdown should be the top issue at every election, but it is surprisingly under-discussed. In theory, almost all our politicians want growth. Keir Starmer and Rachel Reeves keep describing it, nasally and tautologically, as their

Reeves’s worst week so far?

16 min listen

It’s been a tricky week for Rachel Reeves: an onslaught of criticism for the levels of borrowing costs, GDP at 0.1 per cent, and stagflation still gripping the UK economy. Remarkably she has come out of it looking stronger – politically at least. But can she afford to celebrate? The Spectator’s Kate Andrews and data editor Michael Simmons join the podcast to discuss the economy, and go through some of the most striking graphs from The Spectator’sdata hub this week. Produced by Natasha Feroze.

The North American fruit tree that provides a model for economics

Life on Earth is not a zero-sum affair. Most plants only exist thanks to partnerships with fungal filaments in the soil which mobilise essential nutrients for them and receive sugars made from sunlight in exchange. Without those partnerships, humans and most other land animals which depend on plants either directly or at one or two removes would not exist. Cooperation gives rise to a living world that is vastly more complex, productive and beautiful than the sum of its parts. An understanding of this reality is one of the key insights of an ecological worldview; and, argues Robin Wall Kimmerer in this short and charming book, it is of vital

The Mad Men theory of drunk decision-making

In electing this government, we seem to have picked the worst of both worlds: higher taxation combined with austerity in the public finances. The one bonus I had hoped to see from a left-wing regime was a healthily indulgent approach to spending. Instead we get a Chancellor of the Exchequer who is a former Bank of England economist. Voting Labour and getting a neo-liberal Chancellor is like going on a Club 18-30 holiday and bringing your parents along. It defeats the purpose of the exercise. Our education and political systems select for the ability to win arguments far more than for the ability to solve problems In 2012 the Nobel

Is now the most exciting point in human history?

Yuval Noah Harari has sold more than 45 million books in 65 languages. He is a professor with a PhD from the University of Oxford, has spoken at TED and the World Economic Forum in Davos, and his latest book, Nexus, is considered ‘erudite, provocative and entertaining’ by Rory Stewart and ‘thought-provoking and so very well reasoned’ by Stephen Fry. This is the story the book’s cover tells us about its contents, and Nexus itself argues that it is stories which are fundamental to shaping the world. It posits that the strength of humanity comes from building large networks in which we work together co-operatively, but that our weakness is

Why China’s nostalgia industry is booming

Nostalgia is a thriving industry in China. I first noticed this while walking around Nanjing last summer. There were shops with names like ‘Finding Childhood’ or ‘Childhood Memories’, selling sweets and toys that had long been discontinued. There were posters of TV shows and celebrities from the 1980s and 1990s. The customers were like me – misty-eyed millennials, often women, looking for their lost childhoods. ‘Oh my god, remember that!’ We relished every moment. The shops have sprung up suddenly in the past two years, mostly catering to my generation, who spend more on high-street tat than our elders. But older Chinese have been seeking nostalgia too. They get their

Does bitcoin fit the definition of good money?

Three philosophers walk into a crypto-currency. Resistance Money: A Philosophical Case for Bitcoin, I’d argue, is a slightly inaccurate title. Messrs Bailey, Rettler and Warmke have composed a book that is a meticulous and unphilosophically lucid examination of the origins and properties of bitcoin. No Hegel, no Husserl, no fuss. ‘We don’t prophesy,’ they state. ‘We don’t preach.’ They plead a Socratic humility. ‘We’d forgive you for thinking that three philosophers aren’t up to the task.’ They describe themselves as ‘epistemic trespassers’ in matters of economics and cryptography. Access to bitcoin has changed from a muddy country path to a six-lane highway The editorial sessions for Resistance Money must have