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TALKING POLITICS

Ha-Joon Chang

TALKING POLITICS

Catherine Carr

News, News & Politics

4.72.5K Ratings

🗓️ 20 July 2017

⏱️ 40 minutes

🧾️ Download transcript

Summary

With arguments about austerity and public spending back at the heart of British politics, we ask economist Ha-Joon Chang to help us make sense of it all. Why is tax always described as a 'burden'? Are the Tories trapped in their austerity narrative? Where should the government invest for the best return? Plus we discuss why it's so hard to solve Britain's productivity problem: it goes back a hundred years. Ha-Joon Chang is the author of 23 Things They Don't Tell You About Capitalism (2010) and Economics: A User's Guide (2014).

Transcript

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0:00.0

Hello, my name is David Ronserman and this is Talking Politics.

0:07.0

I'm delighted to say that we're joined this week by Harjun Chang, who is one of the most

0:16.3

widely read economists in the world. He's the author of a number of internationally best-selling

0:21.8

books, 23 things they don't tell you about capitalism, most recently economics, the

0:26.3

user's guide. He's someone who's known for challenging the conventional wisdom, not

0:32.2

just in economics, but also the way that economics is presented by journalists, by politicians.

0:39.3

Harjun, if we can start with something that you wrote, I think it was just before the

0:43.1

election in the Guardian, where you were looking at some of the myths that get floated a lot

0:49.4

of the time, but particularly at election time, about money and economics. One of the things

0:55.2

you talked about there was tax, and it was very striking because I hadn't seen anyone

0:58.9

put it quite as explicitly as this, which is that we're used to a particular phrase,

1:04.2

which is the tax burden. Basically that tax is a burden, and you pointed out that it's

1:10.1

not just, in a way it's obvious, that the Conservative Party, you're going to talk like this, because

1:14.9

that's how they see it, but the Labour and even Labour under Jeremy Corbyn have kind of

1:19.1

accepted this rhetoric, because Corbyn says, those who have the broader shoulders must carry

1:23.6

the biggest burden. You think we should talk about tax differently, so if we're not going

1:29.3

to call it a burden, what is it? Well, you should see there's a price that you pay to have

1:35.4

bundle of public services. This is the government offers a huge range of services from national

1:43.0

defense to old age care, from nurseries to high-tech research and development. So with

1:51.6

our tax payment, we are buying these bond drop services, and of course I mean, I can see

1:57.5

why some people are not happy with it, because it's a bundle, and therefore they can

2:01.6

let the exactly opt out of one bit and buy only the things they like, and in the modern

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