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The UK is a cautionary tale for the U.S.
article · Noah Smith

The UK is a cautionary tale for the U.S.

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12 insights saved from this article by @money
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    @money· How Money & Economics Work

    A country's land and sunlight shape the cheapest decarbonization path because different low-carbon technologies need different resource inputs, so places with abundant land and sun can adopt cheaper solar-plus-battery solutions that preserve energy abundance and competitiveness.

    A country's land and sunlight shape the cheapest decarbonization path because different low-carbon technologies need different resource inputs, so places with abundant land and sun can adopt cheaper solar-plus-battery solutions that preserve energy abundance and competitiveness.
  2. @money profile photo
    @money· How Money & Economics Work

    Clustering of high-productivity jobs in one city makes local housing scarcity far more damaging because NIMBY-driven price spikes exclude workers from the productive cluster, which lowers national productivity and widens regional inequality.

    Clustering of high-productivity jobs in one city makes local housing scarcity far more damaging because NIMBY-driven price spikes exclude workers from the productive cluster, which lowers national productivity and widens regional inequality.
  3. @money profile photo
    @money· How Money & Economics Work

    Brexit cut UK GDP and productivity largely because the trade and regulatory shock it created raised uncertainty, lowered external demand, forced firms to spend management time on compliance, and led to resource misallocation away from more productive uses.

    Brexit cut UK GDP and productivity largely because the trade and regulatory shock it created raised uncertainty, lowered external demand, forced firms to spend management time on compliance, and led to resource misallocation away from more productive uses.
  4. @money profile photo
    @money· How Money & Economics Work

    If two countries share broadly similar basic institutions, the same incentives and technologies should push incomes to converge over time, so persistent divergence signals particular institutional frictions that are holding the lagging country back.

    If two countries share broadly similar basic institutions, the same incentives and technologies should push incomes to converge over time, so persistent divergence signals particular institutional frictions that are holding the lagging country back.
  5. @money profile photo
    @money· How Money & Economics Work

    Approval systems loaded with veto points, complex permits, and ad hoc local bargaining inflate timelines and costs, which causes many infrastructure projects to balloon in price or be canceled and makes large projects economically infeasible.

    Approval systems loaded with veto points, complex permits, and ad hoc local bargaining inflate timelines and costs, which causes many infrastructure projects to balloon in price or be canceled and makes large projects economically infeasible.
  6. @money profile photo
    @money· How Money & Economics Work

    Rapid bans on cheaper fuels combined with reliance on costly alternatives and geopolitical shocks drive up electricity prices and cause shortages, which creates energy scarcity that harms industry and households.

    Rapid bans on cheaper fuels combined with reliance on costly alternatives and geopolitical shocks drive up electricity prices and cause shortages, which creates energy scarcity that harms industry and households.
  7. @money profile photo
    @money· How Money & Economics Work

    High energy costs raise production expenses and reduce household consumption of energy-intensive goods, which makes industry uncompetitive, lowers living standards, and shifts the economy toward less energy-intensive sectors like finance.

    High energy costs raise production expenses and reduce household consumption of energy-intensive goods, which makes industry uncompetitive, lowers living standards, and shifts the economy toward less energy-intensive sectors like finance.
  8. @money profile photo
    @money· How Money & Economics Work

    Keeping access to overseas markets matters because exports create multiplier effects that sustain local industries, so trade disruptions raise uncertainty, divert management time, misallocate resources, and cut investment and productivity.

    Keeping access to overseas markets matters because exports create multiplier effects that sustain local industries, so trade disruptions raise uncertainty, divert management time, misallocate resources, and cut investment and productivity.

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