George Osborne talks tough but acts like a Labour chancellor | Simon Jenkins | Comment is free | The Guardian

English: George Osborne MP, pictured speaking ...

English: George Osborne MP, pictured speaking on the launch of the Conservative Party manifesto for the 2009 European Parliament elections, at Keele University. (805×1207 px, 283,711 bytes) (Photo credit: Wikipedia)

This is an excellent article by Simon Jenkins in the Guardian. It’s a MUST READ, in my view. Check it out!

George Osborne talks tough but acts like a Labour chancellor | Simon Jenkins | Comment is free | The Guardian.

Personally, I do not agree with George Osborne’s priorities. I think that Osborne has ignored evidence-based policy and played to ideology and short-term political gain, rather than what is in the nation’s best interests. Osborne has been light on serious reform, e.g., still throwing money at the NHS, rather than insisting on it’s scrapping and replacement with a World-class system of public health. I agree with Jenkins that the local authorities have been decimated, especially the poorer, Labour-led, authorities, who have been traditionally dependent on central government handouts. The local authorities have typically savaged front-line services, rather than take a strategic approach to cost reduction (take a look at what this blog was arguing up to three years ago).

For sure, whoever wins the next election, there will definitely be more cuts or increased taxation.

Here are two open questions:

  1. What has George Osborne really done to increase private sector investment, exports and the nations skill base?
  2. Where will the ax falling the next government?

Any thoughts?



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Aviation industry and big-willy politics.. Simon Jenkins – The Guardian


Politics (Photo credit: Lst1984)

This is a thoughtful article from Simon Jenkins, the Political Editor at the Guardian. The article shows us the murkier side of aviation politics and lobbying. Check it out!

Yeo’s runway


politics (Photo credit: Asoka G M)

 is big-willy politics, and that is the most dangerous politics of all | Simon Jenkins | Comment is free | The Guardian.

The point that the article missed is to consider the agenda for the Coalition Government’s policy paper which is scheduled for release later in the year. In my view, the UK’s airline industry is riddled with inefficiency, and the current regulation of airports provides a major opportunity for improvement. Indeed, the challenge extends to all regulated industries, a point picked up recently by Conservative MP, John Redwood in his blog.

Personally, I struggle with Simon Jenkins argument favoring stimulating consumption rather than investment. Most economists argue in favor of the multiplier effect from stimulating investment which gives more “bangs for your buck” of stimulus. Some open public questions that come to mind are:

  1. Why are UK airports so bad when compared to other major airports throughout the World?
  2. What are the real constraints on improving effectiveness?
  3. How do UK airports compare to other major airports in terms of key metrics, like:
  • Revenues, passenger numbers, revenue mix and relative profitability from segments
  • Costs
  • Investment
  • Customer  service
  • Throughput effectiveness
  • Staff flexibility
  • Space utilization
  • Safety
  • Security
  • Outsourcing etc.?

What do you think?

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