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| How libertarian economics came to a very sticky end | |
| (2 months later) | |
| Sun 12 Nov 2017 00.05 GMT | |
| Last modified on Sat 2 Dec 2017 02.30 GMT | |
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| I looked for the ironic payoff in your business leader (“We’ve got the boring choice for chairman of the Fed…”,), but found none. You write that “if monetary policy is all about the occasional tweak to interest rates – as it was in the Great Moderation of the 1990s – there will be little to fear”. Moderation indeed. | I looked for the ironic payoff in your business leader (“We’ve got the boring choice for chairman of the Fed…”,), but found none. You write that “if monetary policy is all about the occasional tweak to interest rates – as it was in the Great Moderation of the 1990s – there will be little to fear”. Moderation indeed. |
| This was the period that laid the groundwork for the global financial crisis, when the last elements of Glass-Steagall were dismantled and the clever designers of financial instruments began to believe they had really eliminated investment risk. The clue is that the Great Moderation, the well-adjusted face of 1980s libertarian economics, came to an abrupt end in 2007, similar to how the fuzzy, floaty feeling comes to an end when you arrive at the bottom of the cliff.Jann NaefLower KingswoodSurrey | This was the period that laid the groundwork for the global financial crisis, when the last elements of Glass-Steagall were dismantled and the clever designers of financial instruments began to believe they had really eliminated investment risk. The clue is that the Great Moderation, the well-adjusted face of 1980s libertarian economics, came to an abrupt end in 2007, similar to how the fuzzy, floaty feeling comes to an end when you arrive at the bottom of the cliff.Jann NaefLower KingswoodSurrey |
| Enlightenment values survive | Enlightenment values survive |
| At risk of appearing partisan, I have to say that if universities have failed “to promote human welfare” or to address “our grave global problems”, as Nicholas Maxwell claims, my university, Newcastle, has been the exception. (“Our universities betray both reason and humanity”, Letters). | At risk of appearing partisan, I have to say that if universities have failed “to promote human welfare” or to address “our grave global problems”, as Nicholas Maxwell claims, my university, Newcastle, has been the exception. (“Our universities betray both reason and humanity”, Letters). |
| We are celebrating our conferment of an honorary degree on Martin Luther King Jr, 50 years ago, the only university in the UK that did so. Since 1998, the university has provided extraordinary support for the Jubilee Debt Campaign, which promotes poor country debt relief. This has extended from the students’ union, staff unions and to the vice-chancellor, Professor Chris Day, and his three predecessors. | We are celebrating our conferment of an honorary degree on Martin Luther King Jr, 50 years ago, the only university in the UK that did so. Since 1998, the university has provided extraordinary support for the Jubilee Debt Campaign, which promotes poor country debt relief. This has extended from the students’ union, staff unions and to the vice-chancellor, Professor Chris Day, and his three predecessors. |
| The wider global poverty campaign has also featured prominently and, more recently, disinvestment from fossil fuel companies and denunciation by leading climate and energy scientists of proposals to create a new opencast coal mine, near the local beauty spot, Druridge Bay. These are just a few examples.David W GoldingInstitute for Sustainability and honorary chaplainNewcastle University | The wider global poverty campaign has also featured prominently and, more recently, disinvestment from fossil fuel companies and denunciation by leading climate and energy scientists of proposals to create a new opencast coal mine, near the local beauty spot, Druridge Bay. These are just a few examples.David W GoldingInstitute for Sustainability and honorary chaplainNewcastle University |
| Neglect is causing care crisis | Neglect is causing care crisis |
| Sonia Sodha points out the contrast between the government’s bailout of the banks in 2008 and its failure to take meaningful action over the ruling in 2013 that overnight “sleepovers” by carers are entitled to the minimum wage, rather than a flat rate (“We bailed out the bankers…”, Comment). The bailout was to prevent economic catastrophe. The present government is prepared to leave care workers without the pay due to them and to cause widespread concern among all those involved in social care. This neatly describes the difference between the attitudes of the Labour government in 2008 and that of the present Conservative one.Angela Crum EwingReading | Sonia Sodha points out the contrast between the government’s bailout of the banks in 2008 and its failure to take meaningful action over the ruling in 2013 that overnight “sleepovers” by carers are entitled to the minimum wage, rather than a flat rate (“We bailed out the bankers…”, Comment). The bailout was to prevent economic catastrophe. The present government is prepared to leave care workers without the pay due to them and to cause widespread concern among all those involved in social care. This neatly describes the difference between the attitudes of the Labour government in 2008 and that of the present Conservative one.Angela Crum EwingReading |
| Stamping out tax havens | Stamping out tax havens |
| There may be a solution to the harmful effects of tax avoidance on societies and national economies. In a similar way to the licensing of banks, businesses and individuals that wish to sell goods and services to people in Britain could be licensed, too. Traders could be required to adhere to certain conditions, such as not using tax havens, in order to have a licence renewed.Geoff NaylorWinchester | There may be a solution to the harmful effects of tax avoidance on societies and national economies. In a similar way to the licensing of banks, businesses and individuals that wish to sell goods and services to people in Britain could be licensed, too. Traders could be required to adhere to certain conditions, such as not using tax havens, in order to have a licence renewed.Geoff NaylorWinchester |
| Little protection for pensions | Little protection for pensions |
| I feel very sorry for the employees of Monarch Airlines. In 2016, their pension scheme transferred into the Pension Protection Fund (PPF). As a result, pilots’ pensions were cut by around 50%. Now they are losing their jobs through no fault of their own. Finally, Alan Rubenstein, chief executive of the PPF, writes to the Observer (Letters) to say their pensions are “protected” by the PPF. | I feel very sorry for the employees of Monarch Airlines. In 2016, their pension scheme transferred into the Pension Protection Fund (PPF). As a result, pilots’ pensions were cut by around 50%. Now they are losing their jobs through no fault of their own. Finally, Alan Rubenstein, chief executive of the PPF, writes to the Observer (Letters) to say their pensions are “protected” by the PPF. |
| Despite what the PPF keeps saying, the PPF only partly protects pensions when your employer goes bust. Compensation is capped, in the case of the pilots at around £26,500 and all inflation index increases on pension earned before 1997 are cancelled. | Despite what the PPF keeps saying, the PPF only partly protects pensions when your employer goes bust. Compensation is capped, in the case of the pilots at around £26,500 and all inflation index increases on pension earned before 1997 are cancelled. |
| My previous employer, AEA Technology, went bust in 2012. The pension scheme went into the PPF. I and many colleagues stand to lose around a third of the value of our pensions through the loss of indexation. This particularly hits employees with long service before 1997. The AEAT businesses continued to trade without immediate job losses so it seems to some that the pensions had been “dumped” into the PPF. More about this scandal can be found by searching online for “AEA Technology Pensions Dossier”. | My previous employer, AEA Technology, went bust in 2012. The pension scheme went into the PPF. I and many colleagues stand to lose around a third of the value of our pensions through the loss of indexation. This particularly hits employees with long service before 1997. The AEAT businesses continued to trade without immediate job losses so it seems to some that the pensions had been “dumped” into the PPF. More about this scandal can be found by searching online for “AEA Technology Pensions Dossier”. |
| We would all be even worse off without the PPF. But in many cases it only protects part of your pension.Tony WickettWarehamDorset | We would all be even worse off without the PPF. But in many cases it only protects part of your pension.Tony WickettWarehamDorset |
| A cushy life - with Mum and Dad | A cushy life - with Mum and Dad |
| The headline states “Meet the twentysomethings priced out of London, leaving for a new life elsewhere” (Personal finance). Then there is a large accompanying photograph of a young woman who has “decamped from London” and who “this year has been away [on holiday] to the French Alps, Croatia and Prague”. No wonder – she’s moved back in with her parents in Leeds, paying them £150 a month. Hardly a fresh new start.Toby WoodPeterborough | The headline states “Meet the twentysomethings priced out of London, leaving for a new life elsewhere” (Personal finance). Then there is a large accompanying photograph of a young woman who has “decamped from London” and who “this year has been away [on holiday] to the French Alps, Croatia and Prague”. No wonder – she’s moved back in with her parents in Leeds, paying them £150 a month. Hardly a fresh new start.Toby WoodPeterborough |
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