How to boost economic output with the supply-side approach

House prices in the UK have remained positive in the first month of the year, with a 4.1% increase compared to last year and a 0.1% increase from last month, according to Nationwide’s House Price Index. Affordability pressures persist, with buyers needing high salaries, hefty deposits, or assistance from family to purchase a home. Despite improving affordability levels, experts predict a slowdown in the housing market following the stamp duty deadline on 31 March, with...

The FT Editor selects top stories in the Unlock the Editor’s Digest, featuring Smiths Group's decision to break up following pressure from activist investors, leading to a more than 10% increase in shares. The conglomerate plans to sell or demerge two core divisions, Smiths Interconnect and Smiths Detection, focusing instead on John Crane and Flex-Tek. The move comes after Engine Capital called for changes, with Smiths expanding its share buyback program to £500mn. Full Article

Doug Burgum, a former Microsoft executive and governor of North Dakota, was confirmed by the Senate to lead the Interior Department, overseeing drilling and mining policies on federal lands and waters. As a key player in implementing President Trump’s pro-oil agenda, Burgum will also run a White House council promoting oil and gas development. Despite criticism from Democrats, Burgum emphasized the need to extract trillions of dollars worth of oil, gas, and minerals from federal...

Starbucks and the union representing its employees are bringing in a mediator to revive stalled contract talks over wage increases, with a goal of finalizing a framework for contracts at unionized stores. A recent bargaining session saw Starbucks offering a 1.5% annual wage increase, prompting a five-day strike in multiple cities during the holiday season. Despite progress in other work conditions, the two sides remain at odds on key economic provisions, with workers citing concerns...

Amazon is laying off workers in its communications and sustainability departments, as well as its North America stores team, as part of a plan announced by CEO Andy Jassy to eliminate excess middle management by March. A leaked document reveals that AWS sales managers must increase direct reports, halt new manager hires, and demote some managers to lower-paying positions. These changes aim to cut costs and improve competitiveness, with estimates suggesting up to 13,834 managers...

The 119th Congress began with calls from both Republicans and Progressive economists for addressing the national debt, driven by rising long-term interest rates and the cost of extending tax cuts. Concerns about a possible tipping point leading to a catastrophic adjustment due to large deficits pushing up interest rates while growth remains steady are growing. Republicans propose spending cuts, while Democrats advocate for more revenue to support increasing retirement benefits eligibility, as mandatory spending rises....