Blog: May 2017
The gradual strengthening of the global expansion that we projected in the February 2017 Economic Review, following the seven-year low for world GDP growth reached in 2016, seems to be materialising.
It is well known and acknowledged in the government’s Industrial Strategy that Britain has a skills problem: ‘We have a shortage of technical-level skills and rank 16th out of 20 countries for the proportion of people with technical qualifications’.
I’m grateful to the editors of the NIESR Economic Review for publishing a series on Inequality, Social Mobility and the New Economy and for putting early intervention, the subject I was asked to contribute an article about, in the context of the ‘new economy’. It belongs there, even if it may appear strange to some readers to put nurturing healthy, happy children in amongst the cold, hard logic of economics.
The British Government triggered Article 50 of the Lisbon Treaty on 29 March. The announcement was widely anticipated and the financial market response was unsurprisingly muted. As we detailed in the latest issue of NIESR’s Economic Review that went out today, the road to final exit is long and other news and events since the referendum have caused more pronounced movements in financial markets.
Technologies affecting the way businesses produce goods and services are disruptive. This abstract word disguises the upheaval in organizations and consequently livelihoods and social relations resulting from digitization. The upheaval is what enables the economy to deliver greater prosperity in the long term, but in the midst of the disruption that prize is hard to discern, and especially for the individuals whose incomes and employment are affected.
When reforming, the UK is more like a sprinter than a marathon runner. Long periods of inaction and arduous behind the scenes preparations, lead to sudden jolts of activity. And so it was twenty years ago when the incoming Labour government decided to make a surprise announcement about the creation of operational independence for the Bank of England on its fifth day of office.
In her launch statement outside 10 Downing Street last June Theresa May spoke of her vision of ‘a country that works for everyone’, one that wasn’t completely consumed by Brexit and capable of ‘delivering a programme of serious social reform’