The Other Hand

For centuries, the ways in which many societies governed themselves were indistinguishable from mafia-type governance structures. Along came democracy, the rule of law and meritocracy. But how much has really changed? Have we just changed one set of feudal barons for another, albeit with a slightly thicker veneer of civilisation? As philosopher Michael Sandel says, meritocracy is a scam.Prominent economist Jeffrey Sachs recently asserted that America is ruled by and for a small elite - and always has been, apart from an aberrant period from the mid 1930s to the mid 1960s. Surely that’s also true of the UK (with only a much shorter ‘golden period’) and many other countries? Is Sachs right? If so, what does that suggest for what happens next?‘Winner takes all’ may be how the world has always been organised. But the sustainability of that model depends critically on the winners leaving enough on the table to keep the masses quiet. Are today’s elites making the classic mistake? This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

Leading economist Duncan Weldon once again joins The Other Hand to discuss the issues of the day.In his own recent substack post Duncan noted that an ex-Chief Economist of the Bank of England recently stated that ‘economists have no general theory of inflation’. When you think about it, that’s quite a statement.The UK budget revealed another shape-shift for the Tory party. A Chancellor who believes borrowing is ‘immoral’ nevertheless wants to spend a lot of borrowed money. And is raising taxes. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

Leading economist Duncan Weldon joins Chris in conversation about how tax revenues are giving finance ministers in Ireland and the UK much more room for manoeuvre - for now at least. Is the the UK government setting itself up for stringency now to be followed by pre-election giveaways? The British have a strange attitude towards financing de-carbonisation.The state of economic journalism. Modern economics: what message does the recent Nobel prize send? This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

In Jim’s absence (he always needs a couple of weeks off after the budget), Chris speaks to leading hedge fund manager Peter Van Dessel. An Irishman living in the USA, Peter brings a unique and insightful perspective to the current state of Ireland. He shares his thoughts on the ways in which supply shortages and inflation may well last an awful lot longer than many policy makers seem to think. With many a twist and turn along the way. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

The budget was the expected smorgasbord of measures. A budget that makes abundant sense to a centrist. But in this age of populism, does it cut the political mustard? Can the centre hold? In the words of Yeats:Things fall apart; the centre cannot hold;Mere anarchy is loosed upon the world,The blood-dimmed tide is loosed, and everywhere   The ceremony of innocence is drowned;The best lack all conviction, while the worst   Are full of passionate intensity.The test of Ireland’s political stability awaits. If Sinn Fein can buy enough votes with its incoherent high spend, high tax, no property tax policies then the die is cast. Ireland will get what it votes for. The centre is collapsing and societal division awaits. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

Budget 2022 arrives with amazing news about Ireland’s fiscal position. For once it is unambiguously good news. Why not spend all those extra tax revenues on much needed infrastructure? Health and housing?If you read much of Irish media and listen to opposition politicians, Ireland resembles a dystopian hell-hole. Others - inevitably outsiders - see the country as one of the most prosperous places on earth. One of the mysteries of the age is why the coalition allows the opposition to control the narrative. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

Ireland’s tax take is extremely buoyant, at least for the first 9 months of the year. What to spend all the money on? can it last?Boris Johnson has discovered an economic ideology. One that makes no sense whatsoever but is an interesting departure. He is finally accountable for something that can be measured. But Tories don’t like ideologies, least of all one that is a sort of anti-business Neanderthal Thatcherism. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

The world economy is slowing down. Asia, including China, is weakening. European indicators are flashing Amber. Britain’s bosses are warning about a collapse in confidence. The energy shock, if it persists, could lead to even more trouble.A small thing perhaps, but a British minister has, finally, admitted that Brexit involves an economic ‘transition’. That’s code for ‘problem’. Maybe even ‘trouble’. Cast in the language of ‘moving from one equilibrium to another’. It’s school-level economics. Remember: there is no plan. Restricting immigration, raising taxes and throwing sand in the wheels of trade are the three things they have done. The idea now is to sit back and observe the ‘transition’ to sunny uplands. It could be a long wait. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

Rising oil and gas prices join the long list of things joining the inflation party. How are central banks going to react? Is this the end of the long party for stock markets?Is this an energy crisis that could bring the post-pandemic recovery to a juddering halt?‘Conspicuous environmentalism”. Surely it’s time for leadership and honesty? This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.

We ignore history. Policymakers certainly do. But there is very little new under the sun. Duncan Weldon reminds us that we ignore history at our peril. And peril is where we are at. There is so much in this unusually readable book. ‘Levelling up’ is at least a century old, despite Boris Johnson taking credit for its invention. Want to know what some of today’s Trump-Johnson-Orban leaders resemble Mafia Dons? Take a look at history: we are more often ruled by kleptocrats than democrats. Jim and Chris have an enjoyable, longer than usual, but highly entertaining chat with Duncan Weldon about his new book, ‘Two Hundred Years of Muddling Through. The Surprising Story of the British Economy’. You will be surprised! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjpeconomics.substack.com Hosted on Acast. See acast.com/privacy for more information.