Jump to content
House Price Crash Forum
Reck B

Centre For Policy Studies

Recommended Posts

http://www.cps.org.uk/about/news/q/date/2013/08/29/government-has-power-to-tackle-rising-living-costs-fina/

CPS Head of Economic Research and Ruth Porter of the IEA write in the Financial Times on the burden of regulation on wages.

Sir, There is much truth in Janan Ganesh’s opinion (“Living standards are too big a problem for politics”, August 27) that global forces are largely responsible for trends in UK wages, and that government-led attempts to raise wages are undesirable. But the idea that the government is powerless to tackle rising living costs is contrary to the evidence. Both the Institute of Economic Affairs and the Centre for Policy Studies have published research showing how government distortions are partly to blame for pushing up the cost of living.

Planning restrictions have maintained elevated house prices and rents to such an extent that liberalisation could reduce costs by up to 40 per cent. The Common Agricultural Policy means food prices are artificially high. Green energy subsidies and the UK’s unilateral carbon price floor increase energy costs and utility bills. Excessive childcare regulation introduced by New Labour substantially pushed up childcare costs by driving out providers. Fuel and air passenger duties and VAT increases add to the cost of driving and flying.

In all of these areas, government taxes and regulations have contributed to squeezing the purchasing power of wages. Market reforms in these areas, rather than yet more controls and subsidies, could therefore make a substantial positive difference in the long term.

Quite.

Share this post


Link to post
Share on other sites

No word from the CPS or the IEA about the rolling bailout and profiteering opportunity that Osborne continues to extend to the banking criminals via ZIRP, QE, FLS, HTB etc.?

(...)

Sure, these are serious problems as well.

Share this post


Link to post
Share on other sites

FLS and Help2Buy is the principle of Common Agricultural Policy applied to the UK housing market. How much would olive oil cost if the price of olives wasn't fixed at an artificially elevated level by EZ taxpayers? The Tories rant about this sort of price fixing, but quickly used the same process to fix the UK housing market.

I don't doubt that planning restrictions play a part, but aren't we forgetting the MASSIVE taxpayer subsidy given to potential house sellers in order to enable them to sell at a profit?

Mortgage nationalisation (N Rock B&B, A&L, RBS, HBOS) QE, FLS, HtB 1 and 2, LHA, SMI. All these devices are just old fashioned subsidies the sole purpose of which is to keep prices isolated from those damaging market forces. Can't possibly have the free market determining value.

Share this post


Link to post
Share on other sites
No word from the CPS or the IEA about the rolling bailout and profiteering opportunity that Osborne continues to extend to the banking criminals via ZIRP, QE, FLS, HTB etc.?

Thought not. Must be the minimum wage that's to blame for the shit we're in.

+1

This is from the CPS website;

One of Britain’s best known and most respected think tanks, the Centre develops and promotes policies to limit the role of the state,

What a f*cking joke- Help to buy is contrary to everything the CPS is supposed to stand for- it's a blatant state interference in the free market on a huge scale- so where are these fearless champions of the free market?

Hiding- and hoping that the press don't notice that they have failed to condemn it. :lol:

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   209 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.