Economics Observatory | Insights on the UK and global economy

Does Adam Smith's theory really imply today's inequality?

What was the ideal economic system for Adam Smith? His writings disapprove of high profits and advocate regulation, a minimum wage and well-designed taxes.

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Lessons from history

Where is the wealth of nations in the 21st century?

In the 21st century, as the globe faces the threat of climate change, an understanding of the wealth of a nation needs to extend beyond measures of income to include natural capital and biodiversity.

DATA HUB

UK child poverty by family size

37% of children in 3+ child families in the UK live in absolute poverty (after housing costs) – up 3pp since 2010.

Child poverty has fallen for 1–2 child families, but it has risen for larger families.

With the two-child benefit cap to be scrapped, will this change?

Click here to read Lucinda Platt on what has happened to child poverty in the UK over the last 30 years.

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Public spending, taxes & debt

The UK’s public finances: is it time to reform the fiscal rules?

Boosting economic growth while maintaining sustainable levels of public spending is a huge policy challenge for the UK. The government’s self-imposed fiscal rules may themselves act as a constraint. Reforming the rules could help to revive the country’s stagnant economy.

MAGAZINE

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Conceptions of wealth tend to focus on financial assets. But prosperity also depends on natural capital, human capital, social capital and intangible capital.

Inequality & poverty

What has happened to child poverty in the UK over the last 30 years?

Growing up in poverty has highly detrimental impacts on children’s development and their wellbeing in later life. In the UK, where rates of child poverty have been rising sharply in recent years, particularly for those in large families, targeted policy interventions could make a big difference.

Jobs, work, pay & benefits

What do we know about the effects of military conscription?

Mounting national security threats have led a number of European countries to consider reinstating mandatory military service. Proponents argue that it would bolster national defence and boost citizenship among young people. But evidence on either effect is scarce or points to the opposite outcome.

Energy & climate change

Will eating less meat and dairy reduce greenhouse gas emissions?

Eating less meat and dairy will almost certainly reduce emissions. What is less certain is where emissions will fall.

Trade & supply chains

Global defence spending: What next for European military procurement?

With its fragmented production process, European defence procurement is inefficient and uncompetitive in comparison to the United States. A new approach, prioritising cross-country collaborations, could improve things, but would not be without its own challenges.

Trade & supply chains

The UK-US trade deal: what will be the effects?

The ‘economic prosperity deal’ reduces tariffs for around a quarter of the UK’s goods exports to the United States, including cars and steel. But products not covered by the agreement – as well as services exports, for example, from the financial sector – will still be exposed to taxes on trade.

Banks & financial markets

What can happen when economic policy-makers lose credibility?

Fears that central banks’ commitment to low inflation is weakening or that a government’s fiscal plans are uncosted, unchecked and unfunded can be highly damaging for households, businesses and the public authorities themselves. A lack of credibility is a disaster for policy-makers.

Health, physical & mental

The challenge of antimicrobial resistance: how can economists help?

Resistance to antimicrobial drugs has eroded their effectiveness at combating infections. Economics can help to analyse the problem and develop policy solutions, including subscription payments for antimicrobials, incentives for pharmaceutical companies and reformulation of existing treatments.

Public spending, taxes & debt

Which taxes are best and worst for growth?

Tax affects economic growth by reducing consumer spending and lowering incentives to invest. But different fiscal policies have variable overall economic effects, with taxes on income better than those levied on corporate profits in terms of their wider impact on GDP.

Productivity & growth

How do the target sectors in the UK’s Industrial Strategy compare across the G7?

The UK’s Industrial Strategy targets growth in eight high-potential sectors. The UK’s position relative to comparator countries varies in each area, and there is room to accelerate growth in most cases. Across the board, continued investment in skills and innovation is needed to grasp the economic opportunities.

Nations, regions & cities

What’s happening in Bangladesh’s garment industry?

Bangladesh is well-known for its low-cost production of textiles and clothing, with much of the country’s recent development resting on rapid growth in the garment industry. But behind this progress is an unsustainable reliance on low pay and poor working conditions, particularly for women.

All Answers