Scrap cash altogether, says Bank of England’s chief economist – FT.com

The Bank of England in Threadneedle Street, Lo...

The Bank of England in Threadneedle Street, London. Deutsch: Sitz der Bank von England in der Londoner Threadneedle Street. (Photo credit: Wikipedia)

According to this important article from the FT, having already cast paper notes aside in favour of plastic, the Bank of England’s chief economist has proposed getting rid of cash altogether. But the FT argues that the idea of abandoning a system that has been with us for centuries in favour of a government-backed digital currency will seem a step too far.

Source: Scrap cash altogether, says Bank of England’s chief economist – FT.com

A cashless society would have some interesting implications from crime and taxation. But ultimately if an elderly lady wants to keep her savings in cash under her matress that’s her right?

Thoughts?

Europe takes action to help 12 million long-term unemployed get back to work – Employment, Social Affairs & Inclusion – European Commission

European flag outside the Commission

European flag outside the Commission (Photo credit: Wikipedia)

According to this publication from the European Commission, it has proposed guidance today to Member States to better help long-term unemployed return to work.

Source: Europe takes action to help 12 million long-term unemployed get back to work – Employment, Social Affairs & Inclusion – European Commission

I am amazed at this simplistic initiative from the European Commission.

Most economists will argue that the European Commission’s economic policies have precipitated the massive rise in unemployment in Europe, especially Southern Europe. Economic demand has been constrained because of fiscal policies and the absence of investment.

The current proposals from the European Commission seem to have been dreamt up in a fish-bowl detached from reality.

A strategic approach is required, looking at industries, technology, global competion, education, skills, the public sector and social policies. It’s not a supply challenge, it’s demand related. Also increasing immigration flood gates will not help the long-term unemployed in Europe.

Thoughts?