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Client’s Logo here. Inclusive Growth: How New Ambitions and New Alliances Can Rebuild the Opportunity Economy. Rt Hon Liam Byrne MP. June 2013. Context (1): clearing up the crash . High Debt-GDP ratios mean faster growth essential . Context (2): the price and prize of globalisation .
Rt Hon Liam Byrne MP
High Debt-GDP ratios mean faster growth essential
Workers’ share of earnings is collapsing
In swathes of the west, the majority of wealth goes to the minority of people
Breakdown of wage squeeze in the UK
Young people are bearing the brunt of the wage squeeze
In the UK productivity and pay link broke down in 90s
And living standards are likely to remain flat for a long time
Competition policy/ New Market Entrants (aka ‘Enterprise’)
“A potential TTIP is estimated to yield an increase in UK national income of between £4-10 billion annually, or up to £100 billion over a ten-year period (which corresponds to a 0.14-0.35 per cent increase in GDP levels.)” Centre for Economic Policy Research, March 2013 , page 6
EU-China: “Such a deal would deliver a sizeable economic prize with initial economic analysis suggesting it could be worth up to £1.8 billion every year to the UK economy alone”.
PM champions EU free trade deal with China, 2 December 2013
“a TPP agreement provides global income benefits of an estimated $223 billion per year, by 2025. Real income benefits to the United States are an estimated $77 billion per year. The TPP could generate an estimated $305 billion in additional world exports per year, by 2025, including an additional $123.5 billion in U.S. exports.” – Petersen Institute1]
Put science and innovation at the heart if a strategy for long-term economic growth;
Prioritise investment in excellent people;
Strengthen Government’s use of science;
Reinforce the UK’s position as a hub for global science and innovation;
Better align science and innovation with global challenges;
Revitalise science and mathematics education.
OECD: average annual growth in science spend 2008-11
"The idea that the smartest, richest elites of society find this an acceptable activity. This predatory activity.“ M Lewis
“A crucial breakthrough would occur if the major players in the market, particularly the big asset owners, joined the fight—something we believe is in the best interests of their constituents”.
Focusing Capital on the Long Term
by Dominic Barton and Mark Wiseman
Key Reforms to Apprenticeships in OECD
Pressure for higher minimum wages is growing globally
OECD Minimum Wage ($)
22% rise in 13 years: but 0.8% since 2009
A tiny fraction of firms...
Are creating a huge proportion of jobs
Amazon UK paid £2.4m tax last year, despite £4bn sales – BBC, 16/5/14
Starbucks pays UK corporation tax for first time since 2009 – BBC, 24/6/13
‘Companies have to pay their share. Tax is a moral issue’ – Rt Hon Margaret Hodge MP, Chair Public Accounts Committee
Question #1: Do you consider the amount of Federal Income Tax you have to pay is too high, about right, or too low?
Gallup 2014, quoted, http://globaleconomicanalysis.blogspot.com/2014/04/52-say-taxes-too-high-54-say-taxes-fair.html#u0OBf7JPy7Hs6oHG.99
A bigger market-place + better infrastructure
Strong science and innovation policy
Patient capital to encourage long-termism
Good HE + better vocational education the key to unlock better pay
Fair competition and enterprise as basis for market regulation
Regional policy that supports local clusters
Fair taxes connected to business needs