Let’s Keep the EU Renegotiation Simple

Subsidiarity

Perhaps it is only since Tony Blair gave away so much of John Major’s negotiation of the Maastricht Treaty signed in 1992, that we have realised what a good deal that was and how lucky David Cameron will be, if he can win most of it back.  As it is, his shopping list remains secret but it is most likely too long.  He wants to come back with as many goodies as he can get to justify a “yes” campaign so the longer the list, the more successes can be shown.
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Flux Versus Stasis

Parmenides and Heraclitus were two contrasting philosophers who lived at roughly the same time, about 480 BC.  Parmenides took the view that nothing changes.  He claimed that a goddess had shown him the way of truth versus the way of opinion, and he deduced from logical truths about the universe.  The universe, he said, is a single and unchanging entity, it always was, and always will be.

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Abolish the Poor

• It isn’t greedy employers, but greedy government, that is keeping people in inwork poverty; without tax on low earnings even workers on the 2015 minimum wage would earn a living wage.

• The government should raise the national insurance contributions (NICs) threshold along with the income tax threshold to let workers keep more of what they earn—without tax 37.5h on the minimum wage would give workers just 32p/h (or £670/year) less than the living wage.

• Employer-side NICs fall partly on employment and partly on workers’ wages— cutting them should also be a governmental priority.

• Unconditional benefits paid to those in work are not a subsidy to employers, in fact they may induce employers to offer higher wages; those such as tax credits go mostly through to higher wages. Rothstein (2010) estimated that in the United States 73% of the Earning Income Tax Credit went to the worker.

• Even if the minimum wage for the over-25s were increased to £9/hour under the current tax system, take home pay will be only 69p/hour above the untaxed level of the 2015 minimum wage. This difference will become even less significant considering planned increases in the minimum wage in the coming 5 years.

• Instead of imposing a mandatory National Living Wage, the Chancellor would have done better to remove taxes from the lowest paid, giving workers a similar level of post-tax income while forgoing the 60,000 higher unemployment and £1.5 billion lower GDP that the Office for Budget Responsibility predicts will accompany his plans.

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The impact of interest groups on public policy

Interest groups impact upon public policy in several ways.  Firstly, when legislation is being prepared, those drafting it consider the likely impact upon any specific and identifiable groups.  They consider the likely effect on the population as a whole, which is normally beneficial, but also consider any sub-groups of that population which might be adversely affected.  A proposal to open foreshore areas to ramblers will benefit those who might take advantage of their new-found rights, but might impact negatively on those who have previously enjoyed exclusive access.

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Seven Misconceptions About Europe

Myths and deceptions abound concerning the EU and Britain’s place within it or outside it.  Oliver Lewis in the Spectator has done a workmanlike and admirably brief summary of what he calls “Ten myths about Brexit,” identifying scare stories.  There are also 7 common errors about Europe that will almost certainly feature in the debate.  Some are misconceptions and self-deceptions, but all are untrue. (more…)