April fools: British business edition

British newspapers have an honourable tradition of playing April fools jokes on their readers on 1 April. It always cheers me up when I spot them. Today, British business leaders showed a wonderfully understated sense of humour by writing a spoof letter to the Daily Telegraph, which was also the splash in the paper.

The letter opposed Labour’s proposed rise in national insurance as a tax on jobs that will endanger the recovery and praised Conservative plans to cut government spending in 2010-11 instead. So much, so normal. But the gags come in the reasoning, where the cream of British business has gone out of its way to show its funny side.

“In the last few years,” the letter writers joke, “the private sector has improved its productivity by around 20 per cent while productivity in the public sector has fallen by three per cent”. The comic timing was enhanced by the letter coming the day after official productivity figures showed that in the last few years, market sector productivity has fallen 5 per cent, back to its level of 2004, while whole economy productivity (including the public sector) is down just 2 per cent from its peak.

But that is not all. Fully knowing there is a big and unresolved debate over the effect of fiscal policy on output at the moment, the business leaders show wonderful faux ignorance of it. Employees in their companies will be tickled by this display by their superiors. “Cutting government waste [spending] won’t endanger the recovery, but putting up national insurance will,” the leaders wrote.

“We are responsible,” the businessmen (for they are all men) added, “for ensuring our employees come through the recession in good shape”. How the employees will laugh when they read their bosses’ joshing that their futures depend on their bosses’ whims rather than the work of everyone in their companies.

It’s wonderful to see that April Fools are alive and well in British companies.

Money Supply

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Chris Giles Chris Giles has been the economics editor of the Financial Times since 2004. Based in London, he writes about international economic trends and the British economy. Before reporting economics for the Financial Times, he wrote editorials for the paper, reported for the BBC, worked as a regulator of the broadcasting industry and undertook research for the Institute for Fiscal Studies. RSS

Ralph Atkins, Frankfurt bureau chief, has been writing about European economics and politics for the Financial Times for more than 20 years following an economics degree from Cambridge. He has been watching the European Central Bank and eurozone economies since 2004. He has previously worked in London, Bonn, Berlin, Jerusalem and Brussels. RSS

Robin Harding is the FT's US economics editor, based in Washington. Prior to this, he was based in Tokyo, covering the Bank of Japan and Japan's technology sector, and in London as an economics leader writer. Robin studied economics at Cambridge and has a masters in economics from Hitotsubashi University, where he was a Monbusho scholar. Before joining the FT, Robin worked in asset management and banking. RSS

Claire Jones is Money Supply economics team writer, based in London. Before joining the Financial Times, she was the editor of the Central Banking journal and CentralBanking.com. Claire studied philosophy and economics at the London School of Economics. RSS

James Politi is US economics and trade correspondent for the Financial Times, based in Washington DC. He joined the Washington bureau in January 2008 following four and a half years as US deals correspondent covering M&A and private equity. James Politi joined the FT in London in 2000 with an MSc at the London School of Economics, and undergraduate degrees from Georgetown University and the University of Florence. RSS

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