This is one of the very terrors of the modern age apparently – that Donald Trump’s Administration is considering changing the details of an inflation calculation. This will mean that, over time, the poverty line rises less swiftly. That, in turn, will mean a lowering of the amount that people can gain in welfare benefits – assuming their income is static that is. This is terrible, awful, apart from actually being the correct decision to be making that is.…See More
That neoliberal economic theory that I ascribe to tells us that economic growth is going to be higher at a time of lower tax rates and greater deregulation of the economy. As those who like high marginal tax rates and regulation never tire of pointing out, economic growth was higher back in those years when we had those things, not neoliberalism. So much for my favoured theory then is one potential answer.
Another is to attempt to work out why this is so.…See More