Search results for ""Institute of Economic Affairs""

Raising the Roof addresses one of the key issues of our era - the UK's housing crisis. Housing costs in the United Kingdom are among the highest on the planet, with London virtually the most expensive major city in the world for renting or buying a home. At the core of this is one of the most centralised planning systems in the democratic world - a system that plainly doesn't work. A system that has resulted in too few houses, which are too small, which people do not like and which are in the wrong places, a system that stifles movement and breeds Nimbyism. The IEA's 2018 Richard Koch Breakthrough Prize, with a first prize of GBP50,000, sought free-market solutions to this complex and divisive problem. Here, Breakthrough Prize judge Jacob Rees-Mogg and IEA Senior Research Analyst Radomir Tylecote critique a complex system of planning and taxation that has signally failed to provide homes, preserve an attractive environment and enhance our cities. They then draw from the winning entries to the Breakthrough Prize, and previous IEA research, to put forward a series of radical and innovative measures - from releasing vast swathes of government-owned land to relaxing the suffocating grip of the green belt. Together with cutting and devolving tax, and reforms to allow cities to both densify and beautify, this would create many more homes and help restore property-owning democracy in the UK.

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School of Thought – 101 Great Liberal Thinkers profiles the lives and ideas of some of the leading thinkers on individual liberty – from ancient times to the present day. Award-winning author Eamonn Butler outlines key elements of liberal thought and takes a chronological look at those who shaped it across the centuries. He identifies their common goals – but also highlights their differing views on, for example, the extent of government involvement in our daily lives. For anyone interested in politics, government, social institutions, capitalism, rights, liberty and morality, School of Thought – 101 Great Liberal Thinkers provides a clear and concise introduction to a set of radical ideas – and the thinkers behind them.

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How much money is circulating in the United Kingdom? The question sounds simple. In fact, it is notoriously difficult to answer, because what counts as money is not a straightforward matter. A variety of measures have been advanced, and they tell different stories about the changing supply of money in an economy. These differences are of more than merely academic interest, because measures of the money supply are inputs to the decisions of central banks. Wrong answers can lead to wrong actions, with potentially devastating economic effects. This book examines the measure of money and, in that light, the actions of the Bank of England in the lead up to the 2008 financial crisis and its aftermath. It is essential reading for anyone interested in money, measures of its quantity, and the relationship between the money supply and the economic cycle.

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The authors of Education, War & Peace travelled to Liberia, Sierra Leone and South Sudan to conduct research on education in these conflict-affected countries. They uncovered an inspiring story of entrepreneurs stepping into the breach and providing low-cost private schooling to large numbers of children in areas where government was not working well and basic infrastructure had been destroyed. For-profit schools also expanded quickly to soak up educational demand once the conflicts were over. The fees were affordable to families on the poverty line and the children did better academically than those in government schools. Yet international agencies continue to promote government-run schools, even though state education has been a major source of both conflict and corruption in these countries. This groundbreaking study advocates a different approach. Low-cost private schools should be welcomed by policymakers as a means of providing high quality educational opportunities for all.

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George Selgin is one of the world's foremost monetary historians. In this book, based on the 2016 Hayek Memorial Lecture, he shows how a system of private banks without a central bank can bring about financial stability through self-regulation. If one bank stretches credit too far, it will be reined in by the others before the system as a whole gets out of control. The banks have a strong incentive to ensure an orderly resolution if a particular bank is facing insolvency or illiquidity. Selgin draws on evidence from the era of 'free banking' in Scotland and Canada. These arrangements enjoyed greater financial stability, with fewer banking crises, than the English system with its central bank and the US model with its faulty government regulation. The creation of the Federal Reserve appears to have increased the frequency of financial crises. The book also includes commentaries by Kevin Dowd and Mathieu Bedard. Dowd asks whether free-banking systems should be underpinned by a gold standard,which he regards as a tried-and-tested institution at the heart of their success. Bedard challenges the assumption that the banking sector is inherently unstable and therefore requires state intervention. He argues that increases in government control have made the banking system more prone to crisis.

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Employment law has been growing rapidly. This has not exclusively or even mainly come from the European Union. Recent UK governments have added such significant new measures as the National Living Wage, workplace pensions and the Apprenticeship Levy. The costs of such regulation are frequently assumed - by both advocates and opponents - to fall on business profits. This isn't so, except in the very short run. They are instead transferred in part to consumers, but mainly to employees themselves. Mandated benefits - longer holidays or extended maternity leave, mean reduced pay growth and fewer job opportunities. Anti-discrimination laws lead to fewer openings for disadvantaged groups, while employment protection legislation worsens job prospects for the young. Excessive regulation acts as a barrier to entry, shielding incumbents and deterring the foundation of new enterprises. Attempts to restrict new types of employment in the 'gig' economy are counterproductive, serving 'insiders' at the expense of 'outsiders'. This book combines a history of employment laws with analysis of the troublesome effects of various interventions. The author argues for a fundamental rethink. Some basic labour market regulation may still be necessary, but far less than we currently have.

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Classical liberalism is one of the most important political and social philosophies. Indeed, this set of ideas was crucial in bringing the modern world into existence. It fostered a political climate in which economies were free to develop and government limited in scope, essential conditions for the unprecedented increases in living standards seen over the last two centuries. Yet despite its huge contribution, today classical liberalism is poorly understood and often misrepresented, its insights neglected in an era of pervasive state intervention. Eamonn Butler's primer is therefore extremely welcome. It is an extremely clear and well set out introduction to this way of thinking. As such, it is highly suitable for students of the social sciences and makes a valuable contribution to greater understanding of a perspective that is enjoying a long overdue revival.

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Universities in the UK have traditionally operated under a common system which institutionalises important restrictive practices. They have operated in a cartel whose output had been regulated by government. The individual firms (ie universities) are allocated quotas of students by government, and fees and salaries are set in ways that are typical of a classic cartel. The university cartel is underpinned by a further monopoly, granted as of right to each university. In the UK nobody can award degrees unless empowered to do so by royal charter. Professor Douglas Hague takes this argument a stage further by stating that current stage of economic development is strongly based on the acquisition, analysis and transmission of information and on its application. Universities will therefore be forced to share, or even give up, part of their role as repositories of information and as power bases for ideas transmitted through teaching and writing. In this richly original Hobart Paper, Professor Hague identifies the challenges which universities will have to meet and argues that, if these can be overcome, universities should be able to survive both as competitors and complements of the knowledge industries over the coming decades. First published in 1991, with a second impression in 1996, this book has stood the test of time and is remarkably prescient given technical change over the last ten years.

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'Market failure' is a term widely used by politicians, journalists and university and A-level economics students and teachers. However, those who use the term often lack any sense of proportion about the ability of government to correct market failures. This arises partly from the lack of general knowledge -- and lack of coverage in economics syllabuses -- of Public Choice economics. Public Choice economics applies realistic insights about human behaviour to the process of government, and it is extremely helpful for all those who have an interest in -- or work in -- public policy to understand this discipline. If we assume that at least some of those involved in the political process -- whether elected representatives, bureaucrats, regulators, public sector workers or electors -- will act in their own self-interest rather than in the general public interest, it should give us much less confidence that government can 'correct' market failure. This complex area of economics has been summarised in a very clear primer by Eamonn Butler. The author helps the reader to understand the limits of the government's ability to correct market failure and also explains the implications of public choice economics for the design of systems of government -- a topic that is highly relevant in contemporary political debate. This text is an important contribution for all who seek to understand better the role that government should play in economic life.

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The political debate about poverty is entirely dominated by groups calling for more income transfers to the poor. However, now that the scope of our welfare state has reached - or even surpassed - Scandinavian levels, surely this approach has run its course. Award-winning author Kristian Niemietz lays out another approach to dealing with the problem of poverty - one that focuses on addressing the problems caused by government interventions that raise the cost of living. These interventions are enormous in their effect on the poor. As the author points out, the poverty lobbies are more or less silent on these crucial matters. This has not always been the case. In the past, free-trade movements, for example, had been seen as pro-poor movements. Alongside radical market reforms, the author proposes wide-ranging welfare reform to encourage work and remove the penalties on family formation. This would include a form of negative income tax system and the localisation of welfare decisions.

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In the last fifty years, many aspects of socialism have been rolled back around the world. Indeed, in the 1990s, following the collapse of communism in Central and Eastern Europe, it seemed as if classical liberal ideas had triumphed. But this did not happen by accident. The role of free-market think tanks was critical. This volume draws on the experiences of thirteen authors involved in classical liberal think tanks in different parts of the world. The contributors identify the strategies that have proved successful in influencing the public policy and explain how they can be adapted to local circumstances. Indeed, though the 'war of ideas' has been hard fought, it has been only partially won. New threats to freedom have emerged, including environmentalism and big-government conservatism. In some countries the burden taxation and regulation has never been greater. "Taming Leviathan" is essential reading for anyone involved in the battle against resurgent collectivism.

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It is often assumed that government intervention is required to bring to fruition large scale infrastructure projects because the large initial capital outlays such projects require must be funded from the public purse. In "Wheels of Fortune", Fred Harrison shows that large scale infrastructure projects can be made self-funding. Infrastructure projects almost always bring about a large increase in the value of adjoining land. For example, it is estimated that the London Underground Jubilee Line extension increased adjoining land values by close to GBP3 billion. When such infrastructure projects are funded by government, they therefore involve a substantial transfer of wealth from a large number of taxpayers to a small number of property owners. Harrison argues that a fairer and more efficient means to fund infrastructure projects is to capture and use the increases in land values that they bring.

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This book is the latest annual review of utility regulation and deregulation, published by the IEA in association with the London Business School. It contains a series of chapters from leading practitioners in the field which comment on the most significant and up-to-date developments. Two viewpoints are presented on each issue: the first by a distinguished academic or industry expert and the second, a shorter comment, usually by the relevant regulator. Together they show how regulation and deregulation are evolving, and highlight the successes which have been achieved and the failures which must be overcome. The book will be of considerable value to practitioners, policymakers and academics involved in regulatory reform and regulatory economics. It will also be of interest to anyone wishing to gain an overview of international regulatory policies.

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The British Government has focused the discussion on the adoption of the euro on its economic consequences. Whilst there are economic arguments for the UK joining the euro, those arguments are not a matter of 'life and death'. The political implications of the UK joining the euro are much more important. Here the most crucial aspects of the debate are not notions of 'sovereignty' on the one hand or 'maintaining influence' on the other: the key reason to maintain sterling should be to ensure 'monetary competition'. Competition between currencies will make it less likely that central banks will create inflation. Monetary competition should form part of a more general political package. Monetary arrangements will strongly influence the kind of European Union we build, and the arguments in The Euro as Politics can be applied to a wide range of European policy areas. Professor Schwartz argues that the UK should seek to build a free-trade Europe based upon competition and not based upon harmonisation of regulation and laws.

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The teaching of economic history is in decline in our schools and universities. Yet much can be learned from the analysis of historical economic events. In railway.com Robert Miller combines such analysis with an explanation of the technological developments in order to draw parallels between the early British railways and the ICT revolution. Study of the former enables us to understand likely trends in the latter. Furthermore, a number of important policy implications can be drawn from the study of the economic history of both events. Robert Miller shows too how stock market bubbles do not necessarily lead to economic losses. The use of central planning for allocating capital in network development has simply led to technological networks being under-provided. The author also considers the issues of technology 'lock in' and examines how markets, even in apparently unsophisticated economies, can solve complex resource allocation problems.

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This book is a collection of papers from the Beesley Lecture series on regulation held jointly by the IEA and the London Business School in the autumn of 2000. The chapters in this volume are revised versions of the papers given in the series and they are, as usual, followed by comments made by the chairman; the chairman in most cases being the regulator.

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The first edition of this pioneering book produced surprising conclusions from research around the world into the extent of private education. James Tooley challenged the prevailing wisdom that private education fosters social and economic inequality. On the contrary, he found that the private sector, as well as being innovative, often provides creative social responsibility programmes, subsidised places and student loan schemes. He concluded with a proposal about the role of for-profit education enterprises in promoting equitable development. In this second edition, Professor Tooley contributes a new preface which shows how his work has developed and extended into other countries. In particular, he provides a fascinating account of how private education is flourishing in China.

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University courses in environmental economics tend to focus almost exclusively on the role of the state in protecting the environment. However, as these essays show, some less trepid students have discovered that individuals can and do protect the environment through the use of property rights, markets and the rule of law (see especially the essay by Giuliano d'Auria). Indeed, private property is crucial for environmental protection, as testified by the human and environmental tragedy that befell the collectivized USSR (see the essay by Catherine Gillespie). Moreover, state regulation of the environment can have the perverse consequence of undermining private protection and thereby harming the environment (see the essay by Joseph Thomas). Environmentalists often claim that trade is harmful to the environment, citing the decline of the elephant as being a result of the ivory trade. As Nicola Tynan shows, however, trade itself is not usually the problem; rather it is a lack of private property rights which reduces the incentives of individuals to conserve species, be they elephants or seahorses.

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For half a century the US Congress effectively evaded its constitutional duty by allowing the US President to take the lead in the formulation of trade policy. The result was a system which avoided the danger of log-rolling exercises when setting tariffs. It facilitated the growth of trade and thus encouraged economic growth and rising living standards. For some, however, the system has shown signs of fragmentation arising from new pressures and challenges and is producing policy outcomes that lack coherence and rationale. New pressures include demands for trade protection arising from America's mounting trade deficit, as well as jolts to the system caused by the struggle to create a North America Free Trade Agreement. More recently, new demands largely unrelated to trade have perversely affected the policy as non-governmental organisations have demanded a role in its formulation, including those concerned with environmental, social and labour issues. To a significant extent they have effectively 'privatised' the policy process. Moreover, the US government has increasingly used trade policy for non-trade purposes - principally as a tool of foreign and security policy. The pro-liberalisation forces within Congress and the administration have been comprehensively outplayed. In the absence of political leadership and a greater public awareness of the issues at stake the stage is set for the still greater abuse of trade policy by narrow special interest groups in pursuit of particularist ends. In the circumstances, the best that can be hoped for may be a series of international agreements which could constrain the abuse of US domestic policy formulation. But even this will require greater courage and resolve by the advocates of free trade than has recently been shown.

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In Britain the costs of justice - to taxpayers and litigants - have been rising faster than GDP. For efficiency reasons and to encourage innovation, reform is required and some action is already underway. But reform is complicated because 'justice' is a complex product - bought on 'trust' by many consumers and with precedent and spillover effects. Some good ideas for reform are already in circulation. But there is a case for experimentation rather than trying to work out in advance which ideas should be implemented. Market forces should have a bigger role in the civil justice system and there should be more competition in the provision of dispute resolution services. Probable features of a reformed judicial system would be competitive tendering, better information for clients about alternative ways of proceeding and more power for trial judges to control the passage of a case. The supply of judges also needs to be addressed: court fees could be determined by market forces and the proceeds ploughed back into judicial capacity. Alternative dispute resolution (ADR) procedures allow parties a choice of jurisdictions. ADR produces precedents, to the extent they are required, and does not need the threat of litigation in the background. A big advantage of ADR is that it avoids monopolized law which otherwise tends to produce inflexibility, bad rules and politicization.

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Utility regulation in Britain has now entered a phase in which debate is no longer so much concerned with whether it is preferable to rival systems but with how to shape the'regulatory contract' in monopoly areas and, in potentially competitive areas, how to ensure rivalry.

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The root causes of land degradation are the actions of political entrepreneurs, aid agencies, and governments of developing countries who misuse 'aid' money. Only when individuals are permitted to own property, especially land and water, to engage in free trade, and to resolve disputes through customary law, will the problems of land degradation, poverty, and hunger be reduced to acceptable levels.

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This Hobart Paper addresses one of the great economic and social problems of our time: the suboptimal allocation of resources that has arisen from the incompatible financial, fiscal and regulatory regimes for the various modes of inland transport. In order to simplify the argument, it concentrates on the movement of people, whose demand for access to satisfactions gives rise to the derived demand for mobility with with the paper is concerned. The argument rests on the assumption that such satisfactions can only be assessed subjectively and that there is no planning technique which will ensure the provision of the required mobility at a quality and price that will clear the market. Having reviewed the various 'means to mobility', the paper concludes that measures to harmonise their investment, taxation and regulatory regimes so as to create an integrated market form the basis for the only 'national transport policy' that can have either meaning or success.

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In this study the authors examine the so-called scientific 'consensus' about global warming. They argue climate change is a problem of great complexity, and such analysis as has been made by no means supports the view that climate change would place intolerable burdens on future generations.

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Drawing on data from various European colonial empires, Niemietz casts doubt on the claim popular among both 19th-century imperialists and modern-day progressives that empire was a crucial factor in the West's rise to prosperity. Instead, he shows that its immorality aside Western colonialism was simply bad economics.

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The Covid-19 pandemic was, and remains, a global disaster – claiming countless lives and wreaking economic havoc that still reverberates today. But it could have been worse. Much worse. Author Stephen Davies contends the planet ‘dodged a bullet’ this time around. But he warns this was no black swan event: The conflicts in the Ukraine and the Middle East already threaten global stability. And the next existential threat to mankind could happen much sooner than we think – with the chances of it happening increasing exponentially. Here he analyses the potential catastrophes – from nuclear war and climate change to further pandemics, the misuse of Artificial Intelligence and more – that could jeopardise our planet and its people. In this fascinating and at times frightening work, he examines how we assess these risks – and what we can do about them. But Davies is no Jeremiah. He firmly believes the ingenuity, imagination and innovation of millions of people around the world will ultimately secure mankind’s continued existence.

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This paper discusses how 'wars of ideas' can be waged, using the author's extensive experience, both as director general of the Institute of Economic Affairs (IEA) and at other classical liberal think tanks. John Blundell begins his stimulating collection of published essays, reviews and introductions by showing how the founders of the IEA successfully fought the conventional 'planning' wisdom of the 1960s and 1970s, providing the ideas which, by the 1980s and 1990s, had brought about increased freedom and a revival in the use of markets. He draws lessons from those days and then surveys the contemporary scene, showing how the anti-liberal ideas emerging now are different from those which prevailed in the early years of the IEA. As well as giving a valuable view of the IEA's development in the past, these essays also offer advice on how to continue winning in the new circumstances of the present. "Waging the War of ldeas" has been constantly in demand since it was first published in 2001. This new and expanded edition contains three new chapters and is introduced by Professor Walter Williams.

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This book discusses how 'wars of ideas' can be waged, using the author's extensive experience, both as Director General of the Institute of Economic Affairs (IEA) and at other classical liberal think tanks.John Blundell begins his stimulating collection of published essays, reviews and introductions by showing how the founders of the IEA successfully fought the conventional 'state planning' wisdom of the 1960s and 1970s, providing the ideas which, by the 1980s and 1990s, had brought about increased freedom and a revival in the use of markets. He draws lessons from those days and then surveys the contemporary scene, showing how the anti-liberal ideas emerging now are different from those which prevailed in the early years of the IEA. As well as giving a valuable view of the IEA's development, these essays also offer advice on how to continue winning in the new circumstances of the present.Waging the War of Ideas has been constantly in demand since it was first published in 2001. This new and expanded edition has also been produced as a commemoration of the life of John Blundell, who passed away in 2014, and contains an obituary.

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Socialists have never been shy of sketching out their dreams of a better world, but that better world has never materialised in socialist countries. Indeed, socialism has frequently achieved the precise opposite of what was intended by its architects. The first part of Towards a Liberal Utopia? outlines the dreams of liberal economists and political scientists. These are not the dreams of people who wish to achieve their plans through central direction and who believe they know the precise outcome of the process called liberalisation. Rather our liberal thinkers sketch out frameworks for policy, which, in increasing the domain for individual action, will give rise to beneficial results that cannot be foreseen in detail. This will not lead to utopia, but the authors are confident that greater freedom will lead to better and more prosperous society. The second part of the book shows how an earlier generation of liberal economists turned ideas into action. Led by Ralph Harris and Arthur Seldon, the authors writing for the Institute of Economic Affairs helped to turn back the tide of collectivism by undermining its intellectual foundations. They were so successful that no serious political party now proposes a platform of central planning. As the authors featured in the first part of the book make clear, however, that does not mean that there are no new dragons of collectivism to slay. Some battles may have been won, but the war of ideas continues. Towards a Liberal Utopia? is essential reading for all those who are curious to know how the liberal economic agenda will develop over the coming generation. I trust you get some satisfaction from how far the influence of the IEA has spread, directly and indirectly. Milton Friedman, 6th October 2004.

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Recent surveys reveal a large portion of the British population to have a dim view of capitalism. And many on the political left, including the current leadership of the Labour Party, are committed to overthrowing it. That would be a disaster because, as Eamonn Butler argues in this introduction to capitalism, it is the foundation of our prosperity and of our liberal, cooperative and dynamic society. Many criticisms of capitalism are based on common misunderstandings of it, some of them even shared by supporters of capitalism. Written in plain English and assuming no prior knowledge of economics, this book helps readers overcome these confusions. It explains the nature of capital – its creation, preservation and destruction – and the roles played by markets and property rights in making capitalism work.

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Taxes. Why do we pay them? What benefits do they bring? What damage do they cause? And how could they work better? Here, author Eamonn Butler provides a jargon-free guide to taxation, its history, its aims and purposes, and its impact on individuals and economies.

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If you could instantly make the world’s poor twice as rich – but at the same time make the world’s rich twice as prosperous – wouldn’t you do it? This intriguing question lies at the core of An Introduction to Economic Inequality. Inequality has been blamed for many things, from causing lower life expectancy, poor education and political instability, to sparking more suicide, obesity, mental illness and murders. And the claim that the world’s richest 1% own 40% of the planet’s wealth – and that the rich keep getting richer – is regularly used to demonstrate its evils. But here author Eamonn Butler challenges this widely accepted narrative. Are we, he asks, posing the right questions? Don’t the vagaries of life dictate that people are separated by different abilities, different choices, different risks, and different luck? And should equality even be a goal in itself? Butler contends that we should instead address the real social, economic and political problems that seriously harm the lives of the poor. Fixing failing schools, he says, would do more to boost mobility and equality than any amount of income redistribution. And he argues that focusing on inequality loses sight of what’s truly important: not that everyone should be equal, but that everyone should have access to a decent standard of living. This clear-sighted yet concise critique makes for a compelling and constructive contribution to the debate on one of the 21st century’s most emotive topics.

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Are religions influenced by economics? Are economics influenced by religions? If so, how – and why? Faith in Markets? charts the intersection between faith and economics in Judaism, Christianity and Islam. It draws on the thoughts of Adam Smith, Emile Durkheim, Friedrich Hayek and Sir Thomas More, whilst also examining the teachings of Moses, Jesus and Mohammed. Collating a series of essays that first appeared in the academic journal Economic Affairs, it traces the development of Abrahamic faiths through the lens of social science and illustrates how, in the secular world, the pathways between faith and economics have diverged. It examines the frictions between modern-day social thought and religion and, crucially, asks whether these two worlds can ever re-establish links in the future.

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What is democracy? How does it work? What are its strengths – and its shortcomings? Two-thirds of the world’s population, in over 100 countries, live under governments that claim to be democratic. Yet few of those governments live up to the ideals of democracy, or respect its key principles and institutions. Here, author Eamonn Butler defines democracy, explains its purposes, and shows the difference between genuine democracy and the many sham versions that currently exist. He outlines the history of democracy and the benefits it brings. But he also points out the many myths about it that blind us to its limitations. And he explains why it’s important to have a clear understanding of democracy – and how easily it can be lost or abused when people do not properly understand it. Importantly, he asks why so many people today have become disillusioned with democratic politics – and what, if anything, can be done about it.This lucid and fascinating book provides a straightforward introduction to democracy, enabling anyone to understand it – even if they’ve never experienced it.

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This volume of essays examines the empirical evidence on school choice in different countries across Europe, North America, sub-Saharan Africa and South Asia. It demonstrates the advantages which choice offers in different institutional contexts, whether it be Free Schools in the UK, voucher systems in Sweden or private-proprietor schools for low-income families in Liberia. Everywhere experience suggests that parents are `active choosers': they make rational and considered decisions, drawing on available evidence and responding to incentives which vary from context to context. Government educators frequently downplay the importance of choice and try to constrain the options parents have. But they face increasing resistance: the evidence is that informed parents drive improvements in school quality. Where state education in some developing countries is particularly bad, private bottom-up provision is preferred even though it costs parents money which they can ill-afford. This book is both a collection of inspiring case studies and a call to action.

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Socialism is strangely impervious to refutation by real-world experience. Over the past hundred years, there have been more than two dozen attempts to build a socialist society, from the Soviet Union to Maoist China to Venezuela. All of them have ended in varying degrees of failure. But, according to socialism’s adherents, that is only because none of these experiments were “real socialism”. This book documents the history of this, by now, standard response. It shows how the claim of fake socialism is only ever made after the event. As long as a socialist project is in its prime, almost nobody claims that it is not real socialism. On the contrary, virtually every socialist project in history has gone through a honeymoon period, during which it was enthusiastically praised by prominent Western intellectuals. It was only when their failures became too obvious to deny that they got retroactively reclassified as “not real socialism”.

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Eating sugary food, drinking alcohol and smoking cigarettes are legal activities. But politicians still use the law to discourage them. They raise their price, prohibit or limit their advertisement, restrict where they can be sold and consumed, and sometimes ban them outright. These politicians thereby violate John Stuart Mill’s famous principle that people should be free to do whatever they like, provided they harm no one but themselves. Why? What can justify these paternalistic policies? Killjoys reviews the full range of justifications that have been offered: from the idea that people are too irrational to make sensible decisions to the idea that they are effectively compelled by advertising to harm themselves. The author, Christopher Snowdon, exposes the logical or factual errors that undermine each purported justification. He thus provides a comprehensive critique of the health paternalism that has been adopted by governments around the world.

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Government management of fisheries has been little short of disastrous. In many regions, valuable fish stocks have collapsed as a result of overfishing. Ill-conceived regulation also means that every year millions of tons of edible fish are thrown back dead into the sea. While an absence of established property rights means that wild fish are vulnerable to overfishing, the problem is greatly exacerbated by large subsidies. State intervention has created significant overcapacity in the industry and undermined the economic feedback mechanisms that help to protect stocks. This short book sets out a range of policy options to improve outcomes. As well as ending counterproductive subsidies, these include community-based management of coastal zones and the introduction of individual transferable quotas. The analysis is particularly relevant to the UK as it begins the process of withdrawal from the European Union. After decades of mismanagement under the Common Fisheries Policy, Brexit represents a major opportunity to adopt an economically rational approach that benefits the fishing industry, taxpayers and consumers.

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The authors of this book were asked to examine the issue of Britain leaving the EU and determine, from an economic or political economy point of view, what the appropriate role of international institutions should be in this debate. They were then asked to relate this to the reality that exists under the status quo or that might exist if Brexit occurred. In doing this, the volume can help achieve three objectives. First, it provides an analysis of the role that international institutions should play in the economic life of a free society. This is important, and rarely discussed in policy debates. In general, policy discussion tends to revolve around how to tweak the status quo - should we have more EU involvement in climate change policy or military intervention by the UN in this or that case, for example. Second, the authors implicitly lay out what a renegotiation agenda ought to look like if a country (whether Britain or not) wishes to reform the EU in a liberal direction, now or at some future time. At the time of writing this foreword, it is clear that David Cameron's agenda is not nearly radical enough, though it remains to be seen whether even that will be achieved. Indeed, it is not clear that the proposals of the UK government will even take the EU in the right direction. Any serious agenda to create a new settlement should start from first principles and take into consideration for what purposes the institution should exist. This would provide a benchmark against which success can be measured. Third, the authors provide a framework within which the practical options of remaining with a reformed EU and Brexit can be analysed. There are some authors who do not believe that international institutions are at all important in the area they discuss. Others believe that international cooperation can take place through bespoke, informal or ad hoc mechanisms, and that the EU itself need have no role. Presumably, in these cases, Brexit would be the logical way to get the best policy outcome. Another group of authors believes that a reformed or slimmed-down role for the EU would be satisfactory, or that the restraints that the EU currently puts on member states are really important in guaranteeing economic liberalism. As far as these areas are concerned, a renegotiated (or, in some cases, unreformed) EU would be the best option. One interesting issue is raised that perhaps transcends the discussions of particular policy areas. Rather than trying to renegotiate a better deal when it comes to labour market regulation or agriculture, it might be better to try to reshape the institutions of the EU. There might be wider support for that, and, in the long term, better institutions could lead to better policy. Overall, this is an important and unique contribution to the discussion about Britain's relationship with the EU. In the white noise of the referendum debate, serious long-term analysis of the precise role that international institutions should play in a free society, grounded in the context of the reality of the EU's current role, is refreshing. Its relevance will long outlive the referendum on Brexit that is likely to take place in the next 18 months.

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Some would argue that the financial crash revealed failings in the discipline of economics as well as in the financial system. The main post-war approaches to economics, based on neo-classical and new- Keynesian principles and modelling, failed to anticipate the crash or the depth of the slump that followed. In this monograph, Roger Koppl, drawing on ideas from the Austrian school and the work that has been done on policy uncertainty argues that the missing ingredient in many economic theories is a proper theory of "confidence". The author is not only able to make sense of Keynes' "animal spirits", but also demonstrates how "Big Players" - often, though not always, government agencies - can undermine confidence, reduce long-term investment, increase speculation and reduce economic growth over a long period of time. From crisis to confidence not only describes the process through which the economy must go through before a full recovery after the financial crash, it also describes the journey that must be travelled by the discipline of economics. As economics students and other commentators question post-war macro-economics, Roger Koppl provides some of the answers needed to understand the long slump after the financial crash. A theory of confidence is needed in any economic framework that is to explain one of the most important periods in modern economic history.

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This important book outlines the core principles that define a free society. It provides an accessible introduction to the institutions and policies necessary to preserve and enhance individual freedom. The author also sets out the wider benefits of free societies. A combination of small government, the rule of law, strong private property rights and free trade enables entrepreneurship to thrive, delivering large improvements in living standards and lifting people out of poverty. Furthermore, a society based on ordered liberty allows free associations and networks of cooperation to develop that deliver wider social as well as economic benefits. Attempts to expand the role of government to promote equality or security at the expense of liberty have tended to end in failure and oppression. With its clear language, concise arguments and persuasive real-world examples, this primer is essential reading for those attempting to bring freedom to countries where the foundations of a free society are absent, and for those defending liberty in places where traditional freedoms are under threat.

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During 2013-14, the IEA ran a competition to find the best blueprint for Britain outside the EU, with the objective of securing a free and prosperous economy should it choose to leave. The IEA does not have a position on whether Britain should leave the EU. However, it is part of their educational mission to promote a wider understanding of the importance of a free economy and the institutions that are necessary for a free economy. They therefore regarded it as important to promote debate on the best way to achieve this in the event of the British people choosing to leave the EU: that was the main purpose of the competition. To provide a longer-lasting contribution to this debate, the IEA decided to publish this monograph examining the various options using, in the main, entries to the British Exit ('Brexit') competition. There was a wide range of possible approaches suggested by entrants to that competition.Some proposed that Britain should promote free trade and openness through the unilateral removal of trade and other barriers to economic activity; others proposed maintaining formal relationships with European countries through the European Free Trade Association and/or the European Economic Area; still other entrants took the view that Britain should seek to form economic and political alliances and partnerships with countries outside Europe - for example with the Commonwealth or the --Anglosphere - normally with a view to that being a gateway to free trade with as much of the world as would be willing. The winner was Foreign Office diplomat Iain Mansfield, who received most of the publicity at the end of the competition. However, in understanding how Britain can be free and prosperous in the event that it leaves the EU, it is worthwhile considering a range of other approaches to 'Brexit'. It is only through determining the best destiny for Britain outside the EU that the correct decision will be taken about whether to leave the EU and, if so, how. This book therefore brings together Iain Mansfield's submission with edited versions of two other entries.One of those, by Robert Oulds, proposes that the UK remains a member of the European Economic Area and rejoins the European Free Trade Association; another, by Ralph Buckle and Tim Hewish, proposes that Britain pursues free trade through the route of the Commonwealth and the Anglosphere. The final contribution, by John Hulsman, was not an entry to the competition but re-examines an approach to promoting free trade first proposed in his IEA monograph published in 2001, The World Turned Rightside Up. This involved the development of a global free-trade association. Overall, this book is an important contribution to the debate about how Britain should leave the EU, should it choose to do so. It distils clearly the different options and the advantages and disadvantages of alternative approaches with reference to the objective of promoting a free and prosperous economy. The authors have different views about how to achieve the same objective. It is hoped that, by presenting those different views in this volume, the debate will move beyond 'Britain - in or out?' to a debate about something just as important: 'If Britain should leave, how should it leave?'

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In this short book, Robert Barro, one of the world's leading economists, examines the causes and consequences of the financial crash. In particular, he looks at the effects of fiscal stimulus packages and suggests that, whilst they may lead to an immediate positive impact on growth, the effect will quickly wear off and the effect of the so-called stimulus packages will then be negative. These are important observations given the pressure that Western governments are under to increase government borrowing in the face of slowing growth rates. The author moves on to discuss what he believes will be the next crisis - a crisis of government indebtedness. This publication is based on a lecture given in July 2011 and such a crisis has, indeed, unfolded. However, Professor Barro expects that this crisis will not be confined to the Eurozone. For example, US states are failing to deal with the problems of both explicit debt and future pensions and social insurance obligations. The author concludes with suggestions as to how governments should deal with these growing problems. This publication should be of interest to all who want to understand the wider economic implications of the financial crisis and the policy response to that crisis.

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Successive governments have promised to reduce business red tape, whilst doing nothing about it. In fact, with regard to the tax system, ever-greater numbers of taxes and ever-greater complexity have increased burdens on business. This trend has been exacerbated by the tendency of governments to offload their costs on to businesses by turning firms into unpaid tax collectors. Research into the costs of regulation is notoriously difficult. However, this study brings together the best work on the burden of tax compliance and administration and adds important new insights. In particular, this monograph shows the severely regressive nature of the costs of complying with the UK tax system - small firms suffer far more than large firms from the imposition of government bureaucracy related to tax collection. The costs of complying with the tax system are higher in the UK than in many other countries. The authors show that this should not be the case, and propose ways of reducing the burden of tax bureaucracy. These include radical reforms, not just to the administration of the tax system, but also to the nature of the system itself.

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In this Hobart Paper, the authors -- transport economics Oliver Knipping and Richard Wellings -- propose the privatisation of the UK road network. In doing so, they examine the traditional objections to privatisation and find them wanting. in lively discussion, making good use of practical examples, the authors also look at related issues such as road taxation, the planning system, pricing, regulation and the management of congestion. Whilst the authors admit that there are valid objections to road privatisation -- and straightforward privatisation may not suit all types of roads -- there are many imaginative schemes outlined that could deal with those objections. The authors also show that the nationalisation of roads has not been a success. This study is essential reading for policy-makers, academics and students in the field of transport and logistics.

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This book examines the complex relationships between social capital, markets and democracy. It argues that participation in markets positively enriches and enhances the stock of social capital, while, conversely, democratic politics may undermine it by facilitating divisive rent-seeking by special interest groups.

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The debate on rail privatisation often seems to focus on very narrow issues. Those on both sides of the argument seem to be able to employ a mass of statistics to prove their point. Proponents of privatisation suggest, with some credibility, that all was reasonably well with the privatised railways until the Hatfield disaster. Opponents point to spiralling costs since privatisation. The authors of this monograph examine privatisation in the context of the long history of continual government intervention. The government imposed upon the industry a particular structure - separation of track and wheel. It also wrapped it up in increasing amounts of regulation. After examining the history of government intervention in the railways and the privatisation process, the authors of this monograph then examine the future of railway policy. Should the industry be allowed to evolve its own structure - remerging the ownership of track and wheel if it wishes? What aspects of a railway should be regulated? Who should own the various parts of the infrastructure? This monograph is essential reading for all with an interest in railway policy and the process of privatisation.

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