ASI Senior Fellow argues against clawing back bankers’ pay in the CityAM Forum

Senior Fellow of the Adam Smith Institute, Tim Worstall, argues that Mark Carney’s plan to clawback bankers’ pay is “logically ridiculous” in the CityAM Forum: 

The suggestion that fixed pay could be clawed back is logically ridiculous. Pay that is subject to clawbacks is no longer fixed pay: it is variable pay – pay dependent upon the future performance of the organisation.

We’ve already got EU rules where variable pay may not be more than 100 per cent of fixed pay. If what was formerly fixed pay is now variable pay, then under EU rules, we cannot pay bankers anything – because there is no fixed pay for which variable pay can be a multiple. Not paying bankers at all will please the rabble, but it’s an odd thing for the governor of the Bank of England to suggest.

Read the article here.

Sam Bowman’s comments on JRF’s housing report are featured by the Press Association

Research Director Sam Bowman’s comments on the Joseph Rowntree Foundation’s new report – which projects real private sector rents to rise by 90% between 2006 and 2040 - were picked up by the Press Association and featured in over 50 publications.

Sam Bowman, research director of the Adam Smith Institute, said the report gave a “worrying prognosis” of the future for Britain’s renters, adding: “It should be a wake-up call to anyone interested in fighting poverty in Britain.

“But the report’s solutions, which focus on the construction of new social housing, are to some extent just a sticking-plaster.

“Building more social housing will do nothing for first-time buyers or private renters and will simply shift the rising cost of housing from some tenants to taxpayers in general.

“This is not sustainable: we need to make all housing cheaper by making it easier for the private sector to build new homes.”

Sam Bowman’s comments on JRF’s housing report feature in the Yorkshire Post

Research Director Sam Bowman’s comments on the Joseph Rowntree Foundation’s new report – which projects real private sector rents to rise by 90% between 2006 and 2040 – were featured in the Yorkshire Post:

Sam Bowman, research director of the Adam Smith Institute, said the report gave a worrying prognosis of the future for Britain’s renters, adding: “It should be a wake-up call to anyone interested in fighting poverty in Britain.

“We need to make all housing cheaper by making it easier for the private sector to build new homes.”

Read the full article here.

Press Release: Social housing is the wrong answer to Joseph Rowntree Foundation report

Commenting on the Joseph Rowntree Foundation’s new report projecting real private sector rents to rise by 90% between 2006 and 2040, Research Director of the Adam Smith Institute, Sam Bowman, said:

This report gives a worrying prognosis of the future for Britain’s renters, including the catastrophic prediction that private sector rents may rise by 90 percent in real terms by 2040, more than twice as fast as wages, forcing thousands of households into poverty. It should be a wake-up call to anyone interested in fighting poverty in Britain.

But the report’s solutions, which focus on the construction of new social housing, are to some extent just a sticking-plaster. Building more social housing will do nothing for first-time buyers or private renters and will simply shift the rising cost of housing from some tenants to taxpayers in general. This is not sustainable: we need to make all housing cheaper by making it easier for the private sector to build new homes.

Housing is too expensive simply because too few homes are being built. This is in large part a product of the planning system, which is massively weighted against the construction of homes that people want to live in in places people want to live. If we liberalise the planning system, including making it easier to build inside cities and on intensive farmland around cities, we can cut the price of housing and avoid the nightmare scenario the Joseph Rowntree Foundation have outlined. We should tackle the cause of the problem, not the symptoms.

Notes to editors:
For further comments or to arrange an interview, contact Sam Bowman, Research Director, at sam@adamsmith.org / 07596 826323.
 
The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Philip Salter’s comments on young American companies are featured in The Telegraph

Director of The Entrepreneur’s Network, Philip Salter, was quoted in The Telegraph on where entrepreneurs are creating new businesses.

Business age is important, as newer businesses are predisposed to creating larger numbers of jobs than their older peers.

Philip Salter, director of The Entrepreneurs Network, said that “young companies are the primary source of job creation in the American economy”.

Read the full article here.