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The big squeeze

Growth is back, but is not matched by rises in wages or living standards. Politicians’ answers miss the point. Here are some better ones

By Oliver Kamm   January 2014

© Jeff Moore/Empics Entertainment

The British economy is expanding again at a respectable pace. George Osborne, the Chancellor, has sustained much criticism for policies of tight austerity to restore the public finances even while Britain was in recession. He is at least able to claim that the UK has the fastest-growing economy in the G8; ahead of his Autumn Statement he promised a “responsible recovery.” Living standards, however, are stubbornly not rising. This dichotomy is increasingly crowding out other subjects in economic debate. Ed Miliband, the Labour leader,…

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