Left of @uklabour to blame for Thatchernomics

Thatcher was able to implement her policies because the Labour Party of the 1980s failed to offer a credible alternative government. In the 1983 general election, Labour ran on policy such as

After barely upholding the social democratic alliance in 1983, British labour did slightly better after four more years of Maggie Thatcher. Labour won 30% of the vote in 1987, up from 27%. in 1983 The social democratic alliance drop down from 25% to 22%

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One reason was clever responses are national security  in the 1987 election such as this

On 24 May, Kinnock was interviewed by David Frost and claimed that Labour’s alternative defence strategy in the event of a Soviet attack would be “using the resources you’ve got to make any occupation totally untenable”.

In a speech two days later Mrs. Thatcher attacked Labour’s defence policy as a programme for “defeat, surrender, occupation, and finally, prolonged guerrilla fighting… I do not understand how anyone who aspires to Government can treat the defence of our country so lightly.”

In 1992, Labour still lost the election by a landslide despite 13 years of Thatcher good and ended its commitment to unilateral nuclear disarmament, high taxes and old-style nationalisation. Go left, go left so damaged the labour brand that a new generation of leaders was required.

The British electorate had every chance to vote for a hard left Labour in the 1980s. It rejected it resoundingly and almost voted in the social democratic alliance as the main opposition party.

Tertiary attainment of 25-34 and 55-64 year-olds across the OECD

Some countries have experienced large increases in the number of young people graduating from University when compared to their parents. Germany and the USA aside, all countries have experienced a noticeable increase in young adults with tertiary degrees.

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Source: Education at a Glance 2015 – © OECD 01-01-2015.

If human capital is such a major driver of economic growth, should not these countries with large increases in tertiary educated workers be anticipating a growth spurt? The gaps in tertiary attainment across the OECD are much less than they used to be for young adults. Ireland’s burst in tertiary educated workers was after the Celtic Tiger years, not before or during.

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Source: Education at a Glance 2015 – © OECD 01-01-2015.

 

Child poverty in single parent and two-parent households in New Zealand

Looks like the greed of the top 1% was targeted exclusively as single parents since the 1980s. Child poverty in two-parent families has not risen much at all. These households often have jobs and will presumably be under the jackboot of neoliberalism stripping away their bargaining power through the decimation of unions and the introduction of the Employment Contracts Act. Despite these horrors, family poverty did not increase much if there are two parents in the house.

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Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2014 – Ministry of Social Development, Wellington (August 2015), Table H.4.

Bryan Caplan argues that there is an undeserving poor if they fail to follow the following reasonable steps to avoid poverty and hardship:

  1. Work full-time, even if the best job you can find isn’t fun;
  2. Spend your money on food and shelter before cigarettes and cable TV; and
  3. Use contraception if you can’t afford a child.

These two kittens are so cute

Guest Post: Minimum Wage Laws and the Labor Market: What Have We Learned Since Card and Krueger’s Book Myth and Measurement?

Mike's avatarRortybomb

Because of Alan Krueger’s appointment to the CEA, I figured there would be a lot of interest in his previous work on the minimum wage.  In order to figure out how that body of work has aged, I reached out to friend-of-the-blog Arindrajit Dube.  Dube is an Assistant Professor in the Department of Economics at the University of Massachusetts Amherst who has also done similar studies on the minimum wages, including the major 2010 work Minimum Wage Effects Across State Boundaries.  Dube was kind enough to write the following guest post, examining Krueger’s work 15 years later.

Originally Posted At New Deal 2.0.

Alan Krueger’s recent appointment to head the Council of Economic Advisers has led to renewed interest in his book on minimum wages, coauthored with David Card, called Myth and Measurement. In that book, published in 1995, the authors forcefully argued that the evidence showing minimum wage increases killed jobs was…

View original post 2,956 more words

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Creative destruction in movie ticket sales

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