Tax and the Economy
Norbert Hoekstra, Ludger Schuknecht and Holger Zemanek
As the Coalition focuses its economic programme on growth, including plans to stimulate the housing market, should the government embark on another round of fiscal stimulus or is the solution of a different order? Politeia’s new study, Going for Growth: The best course for sustained economic recovery, by three senior economists at Germany’s Finance Ministry considers the evidence from six countries. Each has in recent decades emerged from similar problems of high public expenditure and stifled growth.
News of a 0.7% fall of UK GDP for the three months ending June have triggered fresh demands for a further ‘Keynesian stimulus’ and the injection of fresh public funds to stimulate the economy. But Politeia’s Realistic Recovery: Why Keynesian Solutions Will Not Work, explains that this would be the wrong course. The author, Professor Vito Tanzi, a former Fiscal Affairs Director at the IMF in Washington, shows why this is.
By Jacob Rees-Mogg MP, Martin Vickers MP, Zac Goldsmith MP, James Morris MP, Jason McCartney MP, John Stevenson MP, Craig Whittaker MP, Fiona Bruce MP, Simon Reevell MP, David Mowat MP.
If the UK is to recover and flourish, then the state must do less and individuals must have the freedom and responsibility to do more. That’s the message from a group of ten new MPs who explain how this can be done for Politeia in Freedom, Responsibility and the State: Curbing Over-Mighty Government.
From the very system of government to whether the UK will have enough energy to keep the lights on, this country suffers from too much of the wrong government. Its failings have led to malaise which inspires contempt for those who govern; damages our justice system, leaves young people unemployed and untrained to pay their way through life, and hinders our businesses. The authors* show how by trusting people more and government less, by allowing greater freedom under law, change for the better can occur.
The UK policy to cut public spending is seen by all sides of the political spectrum to be necessary and urgent. But what impact will other developments at home and globally have on the UK's fiscal policy?
On June 13th, Professor Harold James, the financial and economic historian, was at Politeia considering developments in the US, European and UK economies. He discussed the issues which will shape western economies' decisions on tax and spending.
To find out more about this event, click here.