Wonk World Whacks Carney

The new Governor’s first big day at the office has gone down rather badly in wonk world: The IEA call it “the most dangerous development in UK monetary policy since the late 1980s.”:

“Monetary policy should be designed to ensure that we have stable prices. The level of unemployment is mainly determined by a range of factors such a labour market regulation, the benefits system, tax rates and so on. To try to use monetary policy to reduce unemployment when inflation is already above target is playing with fire and could lead us down the road that we followed in the 1970s. This move also calls into question the independence of the Monetary Policy Committee and the Bank of England’s ability to fulfil its statutory duties.” 

The Adam Smith Institute accused him of “fumbling in the dark”:

“Mark Carney had the leeway to make radical change here but he’s bottled it with baby steps… unemployment and inflation come from both aggregate demand (which the bank can control) and aggregate supply (which it has essentially no control over). Since neither of these numbers distinguish between changes in supply or demand, the Bank is still fumbling in the dark with its guesses over whether a change in inflation comes from demand (which means it should react) or supply (which means it shouldn’t). This means firms are still left guessing, and it means that uncertainty still reigns.”

Well that went well then.

What the BBC Doesn’t Tell You

Bad news for the Department for Education this morning, or so the BBC would have you believe. Apparently a “university think tank” says that “the system of planning teacher training in England has broken down and risks a future shortage of teachers”. Doesn’t sound good, eh?

What the BBC doesn’t tell its readers is that the think tank in question, Million+, is quite obviously a Labour front. No mention that Pam Tatlow, quoted a length in the Beeb piece, ran as a Labour parliamentary candidate at the last election. No mention that their chairman, Michael Gunn, is a Labour luvvie who spoke at their conference last year. Nor that interim Head of Public Affairs is pally with the Fabian Society. And certainly not that the woman he is covering for, Victoria Mills, is a Labour councillor in Southwark and a National Officer for Unison. This is the top story on the education section of the BBC website. It is a classic sockpuppet…

Wonk Watch: Mandarin to Head Social Market Foundation

Seasoned Cabinet Office mandarin Emran Mian is off to become the Director of the zero-impact Social Market Foundation wonk shop when Ian Mulheirn quits in August. In his spare time Mian writes novels about murder suspect bankers. Sounds about right…

Labour’s Favourite Think Tank Say Eds are Wrong

IPPR made a living out of producing pleasant reading for Labour, though even they couldn’t spin these figures in Ed’s favour. A YouGov poll commissioned by the Labour wonk-shop finds massive public opposition to the party’s position on welfare. 76% say the system is too soft on people who could work that don’t, with just 10% taking up Ed’s line backing those on benefits. Who is the type of person the public is most sympathetic to protecting? Pensioners, the very group that Balls has targeted for pension cuts if Labour win in 2015. With friends like these…

Show Us Your Laser, Ed

The line from Ed’s speech  that pushed the boundaries of credibility was his promise to “be laser-focused on how we spend every single pound.” Lasers equal precision. So where is the precise detail of how Ed intends to get the welfare bill down? So far we have only had vague pledges to spend more by building houses and somehow guarantee jobs (presumably in the public-sector) which doesn’t bode well for the debt. Hardly laser like…

The TaxPayers’ Alliance has shot down Ed’s vague policy ideas to deal with welfare problems:

Housing Benefit
The main cause of Britain’s ever-increasing housing benefit bill is a lack of housing supply due to planning restrictions, not poorly negotiated deals by local authorities. Freeing up private investment in housing will bring down housing costs for everyone, including the Housing Benefit bill. Trying to cut Housing Benefit by increasing direct spending on housing won’t help taxpayers.
 
Grants for living wage
Offering taxpayers’ money to companies in return for paying a living wage would do little more than link two bad polices into one. Incentives for companies to switch from low-paid jobs to capital investment could lead to fewer jobs, not more.
 
Tax Credits and low pay
Heavy business taxes and onerous regulations mean companies have to pay lower wages. The Government should stop making it so expensive to hire low-paid workers by cutting business taxes like employer’s National Insurance and let workers keep more of the money they earn.  
 
The contributory principle
Benefits and taxes are already too complicated. Reform should focus on expecting people to work for their benefits and preparing job-seekers for the job market while simplifying the system. 

Guido was told that while discussing another much trailed big speech in January, the late Maggie told a friend that the problem with modern politicians is that “they think that once they’ve given a speech, something has happened.” That anecdote came to mind this morning…

Guardian Uses Word “Scrounger” More Than Any Other Paper

Seemingly the entire left-wing twitterati have been up in arms this week over analysis carried via LexisNexis showing that use of the word “scrounger” has rocketed in the British media since 2010. You might, if you subscribe to the Owen Jones thesis that there is a right-wing agenda cooked up in CCHQ to demonise “scroungers”, have expected it to appear more in the likes of the Mail or the Express than the ‘progressive’ metropolitan liberal press. The demonising is in reality coming from Owen Jones, who is relentless in trying to describe any reasonable attempt to reform welfare as an attack on the poor – he is desperate for a Cabinet Minister to use the term “scrounger” so that he can say to the 53% of the population that receives a welfare payment of some kind – including pensioners, war widows and the chronically disabled – that the government thinks you are scroungers. Not so. Guido has been crunching the numbers, and it turns out it is none other than the Guardian that uses the word most, followed by the Indy, where Owen has a column.

After carrying out a simple search of the word “scrounger” on each newspaper website for the period 2010 to date, the figures show that the Guardian used the word in 736 articles over the last three years. In second place is Owen Jones’ Indy, who – as he might say – “demonised the poor” 185 times over the period. Much further down come the right-wing tabloids: 76 for the Mail and 20 for the Express. Owen knows there is no public sympathy for people who abuse the welfare state, he also knows that the majority of the population, thanks to Gordon Brown, receives a welfare payment of some kind. Owen dogmatically refuses to countenance any welfare cut of any kind, that is why he is trying to encourage the likes of mothers who receive child benefit and deserving pensioners to align with those who are rightly losing benefits – fit people of working age who turn down jobs for example – he wants them to believe that welfare reformers think they are “scroungers”That is why Owen and the unpopular progressive sections of the media use the emotive term more than anyone on the welfare-reforming right…

Methodology: Because neither Google or LexisNexis include all paywalled sites in their analysis, Guido used each newspaper website’s own internal search engine to determine in how many articles the word “scrounger” appeared between 2010 and today. The respective Sunday editions of the titles were included with the daily for the purposes of this research.

Borrowing to Pay Public Sector Pensions is £1 in £7

cpsThe budget has yet to entirely unravel this year though there are some nasty figures buried in the small print. The Centre for Policy Studies has spotted that deep within the Budget Red Book is the admission that the cashflow shortfall between public sector pensions’ contributions and pensions in payment is now forecast to double within 5 years. The pensions gap is growing to such an extent that it will soon represent a significant driver of the deficit. The 2013 Budget now forecasts a Public Sector New Borrowing Requirement of £96 billion for 2015 – the year the Coalition optimistically intended to close the deficit. At £13.6 billion, the pension cashflow shortfall will then be equivalent to 14% of the deficit. Unaffordable.

To put it plainly the government will by 2015 be borrowing £1 in every £7 it borrows to cover the gap in public sector pensions, at a cost of £1,500 to every household every year. So much for the post-bureaucratic age…

Tory Brain Drain as Labour Beef Up Attack

The cynics amongst you might think it’s an interesting time for CCHQ stalwart Nick Park to jump to the private sector.

The Tory head of research and attack crafter is off to energy giants Centrica.

The loss of the best part of decade’s experience is a blow for the Tories.

Meanwhile Labour are beefing up their attack team for the coming digital battle. Obama’s rapid rebuttal unit “backroom Brit” Matt McGregor:

“McGregor was responsible for the digital rapid response unit that attacked Mitt Romney relentlessly, ensuring that any statement by the Republican was picked over and rebutted, often within minutes or hours.”

Could get bloody…

Policy Wonk Burns Misleading Plain Packaging Consultation

Setting up a policy consultation that doesn’t actually do any proper consulting seems to be a growing theme under Dave. A report by Rupert Darwall, the policy wonk who helped expose the Civil Service foul up over the Virgin West […]

+ READ MORE +

WATCH: US Obama Critics Attack Falklands Policy

The US hasn’t always been staunch in standing with Britain over the Falklands. Even Reagan had to be handbagged by Thatcher to do the right thing.

Our friends in Washington have produced this history lesson for Obama…

Via Heritage Foundation

[…]

+ READ MORE +

Wonk Watch: Adonis to Chair IPPR

With James Purnell off to the Beeb, Labour wonkshop IPPR have signed up another party thinker as his replacement. Andrew Adonis is their new chair of trustees.

A big name…[…]

+ READ MORE +

Wonk Watch: LibDem Think Tank Backs Business Tax Breaks

LibDem wonk shop CentreForum is a breeding ground for SpAds and bag-carriers. It’s not all mansion taxes and jewellery duty for these yellow sages, believe it or not they are now actually calling for tax breaks for small and medium […]

+ READ MORE +



Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Labour candidate Clive Lewis tells the Staggers:

“I mean, in the multiverse there’s still three universes in a hundred where there’s a Green MP in Norwich, so anything could happen. I could be caught with my pants down behind a goat with Ed Miliband at the other end – well, hopefully that won’t happen.”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Bennett Backs Geo-Political Ghettoisation of Israel Bennett Backs Geo-Political Ghettoisation of Israel
US GOVERNMENT ASKED LYNTON TO SPIN FOR OBAMA US GOVERNMENT ASKED LYNTON TO SPIN FOR OBAMA
LEAKED GOPRO FOOTAGE OF SPACEX ROCKET CRASH LANDING LEAKED GOPRO FOOTAGE OF SPACEX ROCKET CRASH LANDING
NEW STAR WARS TRAILER NEW STAR WARS TRAILER
A PPB From the ‘Cannabis is Safter Than Alcohol’ Party A PPB From the ‘Cannabis is Safter Than Alcohol’ Party
EX MP’S COMPANY BLEW THROUGH PUBLIC CASH EX MP’S COMPANY BLEW THROUGH PUBLIC CASH

POLL FINDS GREEN VOTERS PREFER TAKING LONG HAUL FLIGHTS POLL FINDS GREEN VOTERS PREFER TAKING LONG HAUL FLIGHTS
UKIP’s Favourite Journalist Reads Angry Tweets UKIP’s Favourite Journalist Reads Angry Tweets
UKIP in Scots are Nazis Slur UKIP in Scots are Nazis Slur
Lord Janner Demanded Prosecution of Elderly Criminal Lord Janner Demanded Prosecution of Elderly Criminal
EU ATTACKS GOOGLE FOR BEING SUCCESSFUL EU ATTACKS GOOGLE FOR BEING SUCCESSFUL
Labour’s Queen of Hypocrisy Labour’s Queen of Hypocrisy
GREEN ON GREEN FRACKING DEATHMATCH GREEN ON GREEN FRACKING DEATHMATCH
STAGGERS WEBSITE IN TURKISH HOOKERS HACK STAGGERS WEBSITE IN TURKISH HOOKERS HACK
Ed Gets Punk’d Ed Gets Punk’d
Did Ed Eat His Bogies? Did Ed Eat His Bogies?
MARIO DRAGHI ATTACKED AT NEWS CONFERENCE MARIO DRAGHI ATTACKED AT NEWS CONFERENCE
“Dr” Eoin Clarke Strikes Again “Dr” Eoin Clarke Strikes Again
Labour Manifesto Author Backs Tory Right-to-Buy Policy Labour Manifesto Author Backs Tory Right-to-Buy Policy