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Reck B

Centre For Policy Studies

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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.

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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.

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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.

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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:

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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