Very interesting thread, and not only because it features my favourite economic theory, Baumol's cost disease

Rishi's growth plan so far: ban clean/transition energy sources, real terms benefit protections after a supply-side shock that's reduced real incomes, tighter immigration, and scrap all Truss's supply-side ideas for housing, infrastructure, childcare.

Can the “North London” jibes please stop? I appreciate it is a chance for the new prime minister to make a cheap jibe against his opponent but it demeans him most. Also every time I hear “North London” I think “do they mean Jews” which I assume isn’t what he means but just stop

Required read from Institute for Gov on fresh austerity:
— £40bn would imply ‘real-terms cuts on a par’ with Osbo/Cameron
— BUT services in a ‘much more fragile position’ now so cuts more damaging, harder to deliver
— ‘Easy’ cuts exhausted and capital cuts could haunt govt later

There's a 6th I should have mentioned. 'Bailey didn't perform well enough for our awful policy to work'. 4/10. Regulation and monetary stance weren't perfect! But it's like 'don't blame me for not rearming, I thought the Maginot line would hold'

spare a thought for those of us who await OBR publications eagerly and are sooooooo bored of reading the last one, March 2022, several eras ago. It might have been good for its time but now it is so lame

Some eg Giles Wilkes have made thoughtful arguments that David Card’s recent paper shows that building more homes within reach of the highest paying firms will not substantially raise wages or GDP. Ben Southwood responds with thoughtful arguments that it will. worksinprogress.substack.com/p/agglomeratio…

I do wish that any politician, wonk or writer intending to opine on growth would first watch this video ft.com/video/91b8a350… via Financial Times

Folks getting very excited about that German PPI reading (+45.8% y/y!) and comparing it to the UK reading (+16.1%)…

DON'T.

Not comparable. German reading includes the energy sector, UK does not.

Once you exclude that, German PPI inflation is pretty comparable at +14%.

However you look at it, it is curious to resign from a job because it’s the “right thing to do”, “the business of government relies upon people accepting responsibility for their mistakes”, “carrying on” wouldn’t be “serious politics”; and take the same job just days later

Skyla mystified that anyone would wake up this early

Former economic adviser to Number 10 Giles Wilkes joins Niall Paterson as the chairman and chief executive of the Bank of America says he is 'committed to the UK', despite recent political and economic turmoil.

🕐 7:30
📺 Sky 501 / Freeview 233
📱 Watch live: trib.al/1rOgJ41

Hope we'll see a congratulatory tweet from Johnson

Feels like the integrity part may be off to a rocky start