Reasons to be cheerful

This is exceptionally good, even by Sam’s exceptionally high standards.

'The bigger the inequality in incomes, the bigger the inequality in opportunity' @pjtheeconomist.bsky.social joins us on the podcast to look at what has happened to income and wealth inequality in the UK and how Britain compares with other countries. 🎧 Listen here: ifs.org.uk/articles/how...

Me on interim report of pensions commission. - fails to mention (huge) impact of immigration; - overstates problem of cashing out pension pots; - in my view is misleading on tax relief; - doesn't address affordability of higher pension contributions for low earners www.thetimes.com/business/eco...

Three ways to improve high streets by *raising* business rates: 1. Higher rates on long-empty shops, to force realistic rents 2. End exemption for charity shops. 3. Make landlords pay when candy/vape shops vanish with unpaid rates. They'll ensure rates are paid up-front.

Our quickfire thoughts on what the Milburn review means for cities and how the Govt should think about the opportunities for young people in its urban agenda. As an aside, refreshing to go through a 200+ page Review that is so incisive and well-written 🤯 Thread to follow 👇

The need to address inequality has never been more urgent. In Challenging Inequalities, @pjtheeconomist.bsky.social explains how we've arrived at such a perilous spot—& how we can change course to achieve better outcomes for all. Out now! Read a free preview: press.princeton.edu/books/hardco...

"Challenging Inequalities". Do buy it! Will Hutton has just called it "one of the great works of social science this century". It is also according to @matthewsyed.bsky.social a "wonderfully clear and readable little book". Paul Collier: "a superb critique of British public policy"

(£) www.thetimes.com/business/eco... By @pjtheeconomist.bsky.social

Agree 100% with @jdportes.bsky.social

This is a really good gag...oh

It would be great if the government could spend some time trying to solve the many, many real problems facing the UK – instead of imaginary ones. UK retail operates on *tiny* margins – averaging around 4p in the £1. Supermarkets are cheap and efficient: food is expensive because inputs cost more.

I’m lost for words. Never thought I’d see UK govt trying to set food prices. This is a hugely efficient and competitive sector. What about knock on effects on other prices, smaller shops etc And of course say they want to protect farmers. Please be serious

Quite. We have lost more than 1% GDP in fuel duty over last 20 years. Every chancellor for 15 years has promised at least to maintain real value of duty. Not one has done so. And now this govt backs down at first sign of trouble. Expensive & poorly targeted

If you missed it last week, check out our work on how a national minimum wage shows up in the very different Labour markets of UK cities, and what this means for future rates

Remarkable chart showing huge differences in effects of min wage. More than a quarter at or near min wage in places like Doncaster (where it’s >80% of median). Just one in ten in Reading, Oxford etc. where it’s <60% of median. Obvious risks to some labour markets.

I was still on my 6th at age 40 - if you only count Wilson once.

Courts ruling that wholly different jobs should be paid the same ignore economic realities. Increases cost & uncertainty for business. Will raise costs for all. If govt really, genuinely cares about economic growth and cost of living they’d amend the legislation. www.thetimes.com/article/51e0...

Call me old fashioned and yes there were loads of social problems as a consequence of what happened but 2.6 per cent average annual economic growth would be nice

Such an irresponsible post, stoking a hazy conspiracy theory and undermining trust in the NHS for attention.

A new #book “Challenging Inequalities” – How We Got Stuck and Where We Go Next – by Prof. Paul Johnson @pjtheeconomist.bsky.social Apr 28, 2026 @princetonupress.bsky.social press.princeton.edu/books/hardco...

Important thread. I’d assumed appointments must have happened by now. But no national statistician for a year and no chair of UKSA for almost as long is not good. This may not be the key issue, but I have written about the potential costs of offering v uncompetitive salaries for these posts.

@litreview.bsky.social calls @pjtheeconomist.bsky.social "the ideal guide to the complexities of the UK distribution of income and wealth," in their review of his new book, Challenging Inequalities. Read more here:

'Challenging Inequalities', the book on the findings of our six-year IFS Deaton Review , by @pjtheeconomist.bsky.social, James Banks, Tim Besley, @richardblundell.bsky.social, Angus Deaton, Robert Joyce and Debra Satz, is out now. 📗 Find out more here:

Great piece drawing on IFS Deaton review. “Challenging Inequalities” by me plus several great coauthors is published by @princetonupress.bsky.social. “Superb critique of British public policy” Paul Collier. “A clear signal of hope” Trevor Phillips”. “Compulsory reading” Polly Toynbee.

@pjtheeconomist.bsky.social, author of Challenging Inequalities (out now!), speaks about Britain, growth, and inequalities in this op-ed for @thetimes.com. Read more:

But it now!

Stagnation in combination with a high level of income inequality is a recipe for discontent. It exacerbates other kinds of inequalities. Wealth has become much more important relative to income. (£) www.thetimes.com/business/eco... Very interesting by @pjtheeconomist.bsky.social

This is final output of @theifs.bsky.social Deaton review, co-authored with other panel members. Looks at inequalities in education, work, wealth & health, how they are related, and how govt could address them. Stresses without economic growth inequalities in wealth and opportunity will grow.

This is final output of @theifs.bsky.social Deaton review, co-authored with other panel members. Looks at inequalities in education, work, wealth & health, how they are related, and how govt could address them. Stresses without economic growth inequalities in wealth and opportunity will grow.

@pjtheeconomist.bsky.social times column this week is an incredibly pithy (even by his standards!) summary of the issues and changes in working age welfare - including why spending on it isn't out of control.

I do hope ChX/HMT will look seriously at fiscal devolution within England. It is technically feasible and likely good for regional growth. Obviously needs to be done carefully. Merely assigning a portion of national revenue, as latest HMT doc suggests, achieves little and adds to risks.

A prosperous Britain means facing up to trade-offs

What an incredible coup for The Observer! Ben's one of the best economic communicators in the business - and also a top researcher/thinker in a formidable range of economic areas

Many congratulations. Huge loss for @theifs.bsky.social Ben was a wonderful colleague, a great economist and a brilliant writer. The Observer are lucky to have him. So is everyone who wants to read insightful economic journalism.

What a shame that the government isn’t doing what it said it would do in its manifesto. It should look at the whole system from scratch. It should decide what it is for, and whether it wants to favour particular kinds of business. (£) www.thetimes.com/business/eco... By @pjtheeconomist.bsky.social

Still time to catch up on iPlayer!

PJ is too modest to describe how his team did on University Challenge on Christmas Eve. Catch it up on iPlayer: www.bbc.co.uk/iplayer/epis...

Here’s @pjtheeconomist.bsky.social on a similar theme. www.thetimes.com/article/332c...

4️⃣ #AventLecture Paul Johnson, "Follow the Money - How Much Does Britain Cost?", 2023 Les défis économiques, sociaux et financiers du Royaume-Uni, pays qui a inventé le "welfare state" @pjtheeconomist.bsky.social I was told "Read this book to better understand the UK", and it was a relevant advice!

'I don't think welfare spending is out of control. I think there is almost a moral panic about the level of welfare spending. If we look at the working-age benefit bill, it hasn't changed much over decades, if you look it as a fraction of national income.' @pjtheeconomist.bsky.social #c4news

It’s another conspiracy of silence. Conservatives don’t want to admit they massively increased taxes on high earners. Labour definitely don’t want to say so; they still want to peddle the idea that others, the rich, can pay more. Truth is if we want more spending we’ll all have to pay more.

Even more striking is that a quarter of employees will be higher rate tax payers by the end of the decade. This is a really fundamental shift in the structure of the tax system.

Paul Johnson would actually like the economy to work better for all, to see incomes grow and social mobility expand. He supports effective pro-growth policies. He is less keen on posturing politicians who pretend they have simple solutions and whose policies would damage all the above.

Can we get @pjtheeconomist.bsky.social in charge of tax please. Why don’t the government listen to experts like him?

@pjtheeconomist.bsky.social Thank you for an excellent article in today's (20th September 2025) edition of the FT. A long-term overhaul and simplification of the UK's tax system is badly needed. #Reeves' kite flying of possible actions is both unprofessional and dangerous, isn't it?

Very well put by @pjtheeconomist.bsky.social on.ft.com/4moc6Qw

"The Greens and Corbyn to the left and Reform to the right peddle utterly incoherent, populist economic policies yet are taking large shares in opinion polls." ✍️ @pjtheeconomist.bsky.social argues the solution to the UK's fiscal problems is political not technocratic ukandeu.ac.uk/what-can-rac...