Tag Archives: unemployment

“Look after the unemployment, and the budget will look after itself ” (Keynes 1933). Is he still right?


Keynes was undeniably a genius of his time, but he wasn’t infallible. We should not just assume that he was always correct. As with all prolific writers we can cherry-pick quotations to suit our own political purposes. If we want to argue for more government spending, we can use this:

For the proposition that supply creates its own demand, I shall substitute the proposition that expenditure creates its own income.

(Collected Writings of John Maynard Keynes, Volume XXIX, pp 80-81)

Keynes meant that the mere supply of a commodity is not enough to ensure the sale of that commodity, but money from all government spending inevitably ends up in someone’s pocket. This is a statement of the obvious, maybe, but he evidently felt it needed making anyway. On the other hand, if we are suspicious of what sounds like “magic money tree” economics, as many scathingly describe any deviation from their understanding of ‘sound money’, we can find this quotation:

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Further steady fall in unemployment

Yesterday’s monthly update from the office for national statistics shows unemployment down 97,000 in the last quarter of 2014 and by 486,000 on a year earlier.

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Challenging the narrative: Employment

3D Employment GraphI was engaged in a twitter argument yesterday with someone who was disputing the progress we have seen in employment, putting the improved figures down to a million people enslaved on zero hours contracts.

The Office for National Statistics have provisionally estimated the number of zero hours contracts to be between 583,000 and 1.4 million. There isn’t an established data series for this that would enable historical comparisons, but there are such statistics for full time and part time workers. According to these the number of part time workers is up 356,000 since May 2010, and the number of full time workers is up 1,114,000.

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Opinion: Immigration and unemployment – an idea

Words.Two popular arguments deployed against immigration are that immigrant’s take jobs from British workers or that immigrants are a burden on the welfare state. Both arguments have been shown to be largely invalid: the Lump of Labour fallacy  has long been dismissed as economic bunkum; and existing evidence suggests that the net contribution of recent migrants to Britain’s public finances is positive. However, according to this evidence from  Centre for Research and Analysis of Migration (CReAM) at University College London not all groups of migrants make a positive fiscal contribution …

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Danny Alexander: More people in work than ever before, earnings now rising in line with prices

speech danny alexander 6Two pieces of good economic news today, as the BBC reports:

UK unemployment falls to five-year low of 2.2m

The number of people out of work in the UK has fallen by 77,000 to a five-year low of 2.24m in the three months to February, official figures indicate. The unemployment rate now stands at 6.9% of the adult working population, the Office for National Statistics (ONS) said.

After six years, wages finally overtake inflation

After nearly six years of falling real wages, weekly earnings have finally edged above inflation. Weekly wages, including bonuses, rose by 1.7% in the year to February, up from 1.4% in January, according to the Office for National Statistics (ONS). Earlier this week, inflation, as measured by the Consumer Prices Index (CPI), fell to 1.6%. It is the first time that earnings have been higher than inflation for six years, apart from two months in 2010.

Here’s what the Lib Dem Chief Secretary to the Treasury Danny Alexander had to say:

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Opinion: We can conquer unemployment

unemploymentIn 1929, Lloyd George launched We Can Conquer Unemployment, the policy document that was to form the basis of the Liberals’ election campaign.

This week, George Osborne said “I am committed to securing the “fullest” possible level of employment by helping business to create new jobs and cutting taxes.”

Nick Clegg has said “… many people had accepted real terms pay cuts in recent years to safeguard their jobs and the government must continue to support them as well as creating the climate for new jobs. All I want is the maximum number of people to be employed in the economy and the minimum number to be jobless.”

Just as the productivity gains of the decades prior to the financial crash, were largely captured by the wealthiest in society, so too has the benefit of the asset price inflation generated by monetary policy accrued to the holders of capital at the expense of wage earners and savers.

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LibLink: Baroness Floella Benjamin: Positive role models can break cycle of despair

Baroness Floella Benjamin has written for the Voice website about what the government is doing to help young black people find jobs.

More than 30 million people are now in work and since the 2010 General Election, the number of people claiming the main out-of-work benefits has fallen by 566,000. This is great news and my party, the Liberal Democrats, have worked hard in government to achieve success stories like these, listening to people’s concerns and ensuring the right support is being put in place.

But disappointingly there’s no denying that unemployment is still disproportionately high amongst young black people, especially men

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Recent Comments

  • User Avatarmalc 25th Jul - 2:34pm
    The only reason she is getting publicity from the daily mail and LDV is because she is married to Nick Clegg. Without her marriage she...
  • User AvatarMark Argent 25th Jul - 2:29pm
    On the other hand, British politics is in a mess. Something needs to change. Setting up just another political party doesn't necessarily achieve enough —...
  • User AvatarSimon Banks 25th Jul - 2:16pm
    I'm quite depressed by some of the arguments against this. Yes, wonderful if people who think like us join us and some are doing just...
  • User AvatarPhil Beesley 25th Jul - 2:12pm
    I'd take a look at how legal and policing systems have responded to technology in the past. Courts and judges were clueless about computing when...
  • User AvatarRoland 25th Jul - 2:11pm
    @Stephen R Wigmore - The problem is that UK organisations are being discouraged from applying for EU funding in the next round of funding that...
  • User AvatarRobert Chalmers 25th Jul - 2:05pm
    Couldn't agree more, with the original blog post, and the two comments above thus. I've been very frustrated by the inability of people to look...
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