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Finance is for the many, not the few

The day's most interesting stories from CapX and elsewhere View on Web
Daniel Leal-Olivas / AFP / Getty Images

Finance is for the many, not the few

Diego Zuluaga, CapX

In a speech to a manufacturing trade body today, Jeremy Corbyn attacked banks for 'suffocating the real economy'. Not only is there no real distinction between finance and the 'real' economy. But, unsurprisingly, the Labour leader fails to realise the importance of a healthy financial sector to all economic activity.  

The shaky foundations of Britain's welfare system

Tom Brammar, CapX

Collateralised Debt Obligations once seemed like a useful product that packaged loans to spread risk. But when they were all built on residential mortgages and the property market crashed, it was a disaster. Could the British welfare system contain the same fatal flaw as the financial products that triggered the 2008 crisis?

Russia sets its sights on Lebanon

Michael Peck, The National Interest

Having secured its strategic bases in Syria, including the port of Tartus, which gives its warships access to the Mediterranean, Russia is keen to broker a military agreement with Lebanon. Unlike Syria, Lebanon has historically had strong ties to the West. But the US may be cautious about challenging these overtures.

The myth of dystopian deregulation

Ben Ramanauskas, CapX

David Davis's remarks that Brexit would not lead to a 'Mad Max-style dystopia' have been questioned by those who claim EU regulation and economic restrictions are a sine qua non for civilisation. The evidence, though, is all the other way: free societies rooted in property rights and the rule of law prosper, while highly interventionist ones collapse.

Venezuela's hyperinflation

Silvia Merler, Bruegel

In Venezuela, food and medicine are in desperately short supply, the government is rated the most corrupt in the Western hemisphere, and inflation is predicted to hit 13,000 per cent this year. As the country's political and economic situation worsens, is there any way out of this nightmare for the Venezuelan people?

Stat of the Day

And if you want more...

- Americans are moving for economic freedom (CapX)
- Australia's new protectionism (CapX)
- Twenty questions for Steven Pinker (TLS)
- Amazon Go rebuilds retail (Wharton)
- Facebook tackles social mobility (Politico)


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