Government spending

Monday

Joel Kotkin and Wendell Cox

The $130 billion train that couldn’t

From our US edition

In the annals of stupid and poorly run schemes, the California High-Speed Rail project ranks among the worst. Its future, even a dramatically scaled down one, has become ever more precarious since the Trump administration’s Department of Transportation rescinded $4 billion in funds already granted the project. Governor Newsom has already filed a suit to reverse the action, but he can’t legislate away the reality that this project is an abject embarrassment. When voters approved $9 billion for the plan in 2008, the California High-Speed Rail Authority estimated that it would cost $33 billion and start running by 2020 – and that was just for the San Joaquin Valley portion. The cost has since ballooned to $130 billion, and no stretch is operational.

High-speed rail construction site in San Francisco, California

Thursday

Daniel Hannan

Reversing our economic decline is not easy, but it is simple

Our immiseration came swiftly and stealthily. At the start of the 21st century, Britain was a prosperous country. Ambitious people fought to come here. We trusted that, over time, we would become wealthier – an expectation that had been accurate for most of the previous two centuries. Since the millennium, Britain and western Europe have pretty much stopped growing – especially if we ignore the impact of immigration and calculate GDP per head. Reversing this slowdown should be the top issue at every election, but it is surprisingly under-discussed. In theory, almost all our politicians want growth. Keir Starmer and Rachel Reeves keep describing it, nasally and tautologically, as their ‘number one priority’.

Thursday

Matthew Lynn

Was furlough the worst £70 billion ever spent?

Concorde obviously. The Iraq War perhaps? Or Scottish devolution? It is not hard to come up with a list of really terrible ideas that the British government has wasted money on over the last 50 years. Even so, and despite some tough competition, we now have a fresh contender. It looks as if the furlough scheme will top them all. The scheme ends today, with roughly a million people still collecting a slice of their wages from the Treasury. The total bill is set to come in at around £70 billion. To put that in context, for the same money we could have tripled spending on policing and just about eliminated crime. Or we could have suspended student loans for four years and made university free again.

Sunday

Katy Balls

The difficult decision Rishi Sunak has to make

This week Boris Johnson is expected to announce an end to the national lockdown. However, with a return to normal still far away with the UK to move back into a stricter form of the three tier system, good news remains limited for the time being. That's also the case with the Chancellor's spending review. When Rishi Sunak gets up at the despatch box on Wednesday to announce his funding decisions, there will be hints of the difficult decisions he and Johnson face in the coming months and years as a result of coronavirus spending. Sunak and Johnson must decide whether to implement tax rises in this parliament, or fight the next election not being able to rule out 'hard choices'.