UK chancellor Rishi Sunak seems to be trying to build for himself the image of a man who is not afraid to “tell it like it is” when the situation requires it. But his actions show that he is prepared to sacrifice long-term economic development for a short-term boost for his Conservative party.
Many people admire companies like Uber or Amazon for the speed with which they build market share and “disrupt” the competition. There is more and more talk about “Uberisation” and when retailers go bust, they are said to have been “Amazoned.”
But we should perhaps stop and think: are we in fact praising nothing else but the return to old-fashioned exploitation? These companies’ main, crucial competitive advantage is cheap labour. OK, technology helps, but if they were to treat people who work for them properly and pay them higher wages, they would not be as rich as they are now.
I was reading the other day on the blog of excellent Bucharest-based economist Radu Craciun his latest article: “Is Eastern Europe the EU’s scapegoat?” When I read the headline, I thought the article was about Brexit; but in fact, Radu writes about how some experts in the EU claim that the single currency was created as a way to maintain the unity of the Union after it expanded “too rapidly” to the East.
Well, that’s new. I didn’t realise that, besides causing English people to behave irrationally against their own interests and vote to leave the world’s biggest trading bloc, Eastern Europeans are also guilty of inspiring what could turn out to be the world’s least successful currency union.
UK election jitters have contributed to a slowdown in the country’s technology sector in the first quarter of the year, a survey by consultants KPMG shows.
European equities are likely to continue to lead the stock markets higher into the end of the first quarter, but there will be some hiccups.
The technical picture looks good, but the question is whether technical factors and the aggressively interventionist monetary policy will be enough to put an end to the eurozone crisis for good.
A recent report on unemployment from the International Labour Organisation (ILO) makes for grim reading, finding that things are going to get worse on the jobs front.
The report proposes one solution to ensure a sustained economic recovery and a revival in the job market, but it will have to be implemented at the expense of the wealthier members of society.
Investors have come to believe the European Central Bank (ECB) will print money and all will be good again. Consensus is that this will happen sometime in the first three months of 2015.
But they ignore the biggest problem that the eurozone has, which has not been solved by successive governments: reforming the labour market.
By: Sourajit Aiyer
A common thread binds all developing and developed nations today – the issue of skill-creation. Dynamics of commerce are shifting, and in these changing times, our skill capabilities can help keep our countries competitive and relevant.
Deflation worries, which have increased over the past year, are exaggerated, economist Andrew Smithers said in a recent analysis.