Search results for ""Institute of Economic Affairs""

It’s one of the big questions of our time: Are there too many people in the world? Or too few? Whichever way, how would we decide? Here, economist Steven E. Landsburg, acclaimed author of The Armchair Economist and Can You Outsmart an Economist?, assesses the benefits – and the drawbacks – of having a bigger global population. The People Paradox is based on the transcript of his fascinating 2017 IEA Hayek Memorial Lecture, in which Landsburg details how the growth in the world population has brought immense improvements to our quality of life. He contends the planet still has plenty of room – and addresses continued calls for population control. Landsburg, professor of economics at the University of Rochester in Rochester, New York, draws on everything from modern history to everyday life (including the contents of his sock drawer!) to mount a thought-provoking, powerful – and often humorous – argument for continued population growth. With a commentary by Dr Stephen Davies, Head of Education at the Institute of Economic Affairs in London.

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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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Politicians around the world have signed up to achieving carbon net zero by 2050. And several countries, including the UK and those in the EU, have struck a ‘new green deal’. This puts environmental taxes and subsidies at the heart of energy policy. But it’s created an immensely complex and costly merry-go-round in which even fossil fuels end up being subsidised. This chaotic system, say authors Philip Booth and Carlo Stagnaro, is wide open to regulatory capture – and to an ideologically motivated agenda. It is also less resilient to crises in energy supply, such as the one caused by Russia’s invasion of Ukraine in early 2022. In Carbon Conundrum they illustrate the incoherence, iniquities and inefficiency of this large-scale government intervention. And they warn that ‘climate change is too important a challenge to be approached in this way’. Instead, they argue for a rational ‘polluter pays’ system of taxing energy sources. This, they contend, would give individuals and businesses much more control over how they reduce carbon emissions. And it would stimulate greater levels of carbon reduction – at a much lower economic cost.

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What is free speech? How is it under threat? And why should it be defended at all costs? In this succinct and insightful book, author Jamie Whyte contends that free speech brings fundamental benefits to society – it promotes the growth of knowledge and provides an essential bulwark against tyranny. He argues against new attempts to constrain free speech – particularly in social media – and critiques the rationale of politicians and activists who seek to limit it. And he proposes a key test – a limiting principle – which legislators and judges should apply against any proposed curtailment of free speech. Being offensive, for example, wouldn’t pass this test – because important new ideas are often offensive to people whose worldview they challenge. Whyte also issues a rallying cry: Those who prize free speech must once again come to its defence – as he outlines exactly Why Free Speech Matters.

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Who is AYN RAND? Few 20th century intellectuals have been as influential – and controversial – as the novelist and philosopher Ayn Rand. Her thinking still has a profound impact, particularly on those who come to it through her novels, Atlas Shrugged and The Fountainhead – with their core messages of individualism, self-worth, and the right to live without the impositions of others. Even though ignored or scorned by some academics, traditionalists, progressives, and public intellectuals, she remains a major influence on many of the world’s leading legislators, policy advisers, economists, entrepreneurs and investors. Why does Rand’s work remain so influential? Ayn Rand: An Introduction illuminates Rand’s importance, detailing her understanding of reality and human nature, and explores the ongoing fascination with and debates about her conclusions on knowledge, morality, politics, economics, government, public issues, aesthetics and literature. The book also places these in the context of her life and times, showing how revolutionary they were, and how they have influenced and continue to impact public policy debates.

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Amidst the debates about 'austerity' a number of vital debates in public finance have been sidelined. Because the reductions in government spending - small though they have been so far- have been designed to reduce the government's borrowing requirement, there has been little discussion of whether the size of the state should be reduced in order to facilitate long-run reductions in the burden of taxation. This book traces the history of the growth of the size of the state over the last 100 years whilst also making international comparisons. There is a particular focus on recent and projected future developments which shows that, though the total level of government spending has not decreased significantly in recent years, there has been a big redirection of spending from some areas to others. The authors then examine the evidence on the relationship between taxation and economic growth. As well as reviewing recent literature, they also undertake new modelling that higher taxes are detrimental for growth. In the final part of the book, the whole UK tax system is reconsidered in a proper economic framework.The UK has one of the world's most complex tax systems and its incoherence has increased over the last five years. Sweeping reforms are proposed to the system which would involve abolishing around 20 taxes and the development of a simple, predictable tax system based on principles that should gain wide acceptance.

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John Taylor is one of the foremost economists of our generation. His ideas were implemented in central banks across the world during the period of price stability, economic growth and financial stability that followed the 1980s. This period culminated in the financial crisis of 2008 which was followed by a very slow recovery which, seven years on, can hardly be said to be complete. This book presents Taylor's view of the financial crisis and its aftermath.Taylor argues that deviating from strict policy rules, both before and since the crisis, contributed to the events of 2008-13 and, especially, the very slow recovery in national income after the financial crisis. Furthermore, in other areas of government activity, such as regulation and law-making more generally, instability is being created, which is very bad for the economy.

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Foreign aid and overseas military intervention have been important and controversial political topics for over a decade. The government's controversial target to spend 0.7 per cent of national income on foreign aid has been widely welcomed by some, but strongly criticised by others. Furthermore, the controversy of the Iraq war rumbles on, even today. This is all happening amongst much instability in many parts of the world. In this short book, a number of authors challenge the assumption that we can bring about economic development and promote liberal democracies through direct foreign intervention - whether economic or military intervention. The lead author, William Easterly, drawing on his wide experience at the World Bank and as an academic, is a renowned sceptic of intervention. He points out that solutions proposed now to the problem of poverty are identical to solutions proposed decades ago - but the plans of rich governments simply do not successfully transform poor countries. Academics Abigail Hall-Blanco and Christian Bjornskov add further context and put forward empirical evidence that backs up Easterly's argument. Syvlie Aboa-Bradwell draws upon her own practical experience to give examples of how people in poor countries can be assisted to promote their own development. This book is essential reading for students, teachers and all interested in better understanding how to help - and how not to help - the world's most disadvantaged peoples.

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The UK has the most centralised system of government amongst major economies. This results in poorer services, lower economic growth and higher taxes. We have also developed an approach to devolution that is incoherent and unstable. This short book proposes an entirely new set of constitutional arrangements. It proposes that the UK should develop a federal structure of government with only a small number of functions such as defence and border control being determined at the UK level. All other functions would be the ultimate responsibility of individual nations within the UK, though Wales, Northern Ireland and England could combine together if they wished. The author also proposes further radical decentralisation of government. Local government should become responsible for a much wider range of functions and raise the revenue to finance them. In areas such as health and education, the government role would be diminished further as parents, families and civil society institutions are provided with finance to directly procure their own services. Overall, this is a radical plan to completely change the nature of government in the UK.It would return power to the people and reverse the long trend of centralisation that has happened since World War I.

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Governments throughout the Western world are spending at levels that could not have been imagined by pre-war economists - even by people such as Keynes. High levels of government spending have had a significant effect on economic growth and on economic freedom. In his 2013 Hayek lecture, Grover Norquist, founder and president of Americans for Tax Reform, explains how the tide can be turned. He discusses both the political and economic mechanisms necessary to effect change. In three commentaries on the lecture, economists set the UK and European context and discuss how policy changes on this side of the Atlantic can make our economies more conducive to reform. Such reforms are necessary, argue all the authors, to ensure that we have dynamic economies in which governments serve the needs of their citizens rather than simply tax and spend more. This monograph is essential reading for students of political economy as well as all those interested in economic reform and the policy debates taking place in the United States.

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This title features contributions from James Alexander, Michael Beenstock, Philip Booth, Eamonn Butler, Tim Congdon, Laurence Copeland, Kevin Dowd, John Greenwood, Samuel Gregg, John Kay, David Llewellyn, Alan Morrison, D. R Myddelton, Anna Schwartz and Geoffrey Wood. This book challenges the myth that the recent banking crisis was caused by insufficient statutory regulation of financial markets. Though it finds that statutory regulation failed, and that market participants took more risks than they should have done, it appears that statutory regulation made matters worse rather than better. Furthermore the fifteen experts who have contributed to this study find that government policy failed in other respects too. As with the boom and bust that led to the Great Depression, loose monetary policy on both sides of the Atlantic helped to promote an asset price bubble and credit boom which, at some stage, was bound to have serious consequences. Rejecting the failed approach of discretionary detailed regulation of the financial system, the authors instead propose specific and incisive regulatory tools that are designed to target, in a non-intrusive way, particular weaknesses in a banking system that is backed by deposit insurance. This study, by some of the most eminent authors in the field, is essential reading for all those who are interested in the policy implications of recent events in financial markets.

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Nobody who has even a passing acquaintance with economics could fail to realise that Western governments are highly indebted. Current generations have been consuming at the expense of future generations. However, just how indebted are we? The government measures how much it has borrowed to meet past spending commitments, but it does not measure how much money it needs to meet all the future pensions and healthcare promises it has made to tomorrow s older generations. Furthermore, no funds have been set aside to provide for these costs. Governments are allowed to produce accounting information in such a cavalier fashion, using methods that would be illegal for private sector companies. Fortunately, though, scholars have been able to examine the detail of government policy and the financial commitments of future governments in order to determine just how indebted we are. This IEA publication brings such calculations to life by showing by how much spending will need to be cut and taxes raised in order to make the government s fiscal position sustainable. This work should be of interest to politicians, to students and teachers of economics and, indeed, all who are interested in public policy and the sustainability of Western economies.

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When it comes to the purchase of everyday goods such as coffee, tea and sugar, most consumers believe that sellers of Fair Trade products occupy the high moral ground. Despite its strong statements, however, the claims of the Fair Trade movement have not been tested properly. This important study, whilst not doubting the position that Fair Trade is part and parcel of a market economy, does question the claims made by the Fair Trade movement. The market economy and free trade - often decried by proponents of the Fair Trade movement - may deliver the benefits that the Fair Trade model brings without the costs and bureaucracy involved in obtaining the Fair Trade label. Furthermore, this study questions the exclusivity often claimed by Fair Trade organisations: there are other social labelling initiatives that perhaps have more transparent objectives. The author - a trade expert from Dundee University with broad practical experience of international trade - also finds that criticisms of Fair Trade are exaggerated, and he does accept that Fair Trade can bring some benefits to producers in particular circumstances. This study is essential reading for all those who wish to understand better this 21st-century consumer phenomenon and whether it actually delivers the benefits its proponents claim.

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The institutions of the European Union are gaining more and more power at the expense of national and local governments, as well as individuals and private businesses. There would appear to be no reverse gear in this process, while objections from the general public, as expressed in periodic referenda, tend to be brushed aside. This ground-breaking study explains increasing centralization by analyzing the economic incentives at work. The structure of European institutions means they have a vested interest in ever-closer union because this enhances their influence and prestige. Moreover, the bureaucrats themselves are self-selecting. Those that are pro-EU are more likely to seek positions in these organizations and therefore tend to favor policies which give the institutions more responsibilities. The author sets out a series of reforms designed to counteract the centralizing tendency and to ensure that the role of EU bodies is more closely aligned with the preferences of citizens.

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This monograph considers issues that are central to our understanding of self-employment in the UK. The author begins with a review on the evidence of the role of self employment and entrepreneurship in employment creation. The discussion then moves on to consider self-employment as a route for advancement of many groups in society that face disadvantage in the labour market. The author concludes by considering the role of government in this relationship.

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This is the latest book in the annual series published by the IEA and the London Business School, which critically reviews the state of utility regulation and competition policy. The strength of the series is that each chapter is followed by a comment by the relevant regulator or a prominent expert in the field. This new volume contains chapters on a number of prominent concerns, including changes in the British system of utility regulation, the spectrum allocation question, liberalisation of EU energy markets, security of supply issues, reform in the European postal sector, the future of rail regulation, the cost of capital and Ofcoms strategic approach to regulation.

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In a new study, Patricia Morgan shows how tax and benefits policy has undermined family life in Britain and encouraged fraud and dishonesty. The study shows how the tax and benefits systems are particularly harsh on single-earner couples who have to earn over GBP50,000 before there is no loss from declaring their relationship to the authorities. This situation encourages couples not to marry and, if they are living together, to lie to the authorities about their family situation. In 2004/05, the government paid credits and benefits to 200,000 more lone parents than actually live in the UK -- fraud is widespread. The tax and benefits system encourages such fraud. In the most extreme case, a couple can gain nearly GBP10,000 a year by not declaring their relationship. Family life has been discouraged over 25 years by both Conservative and Labour governments. In the Thatcher years, the Conservative government gave lone parents special financial benefits and priority entitlement to council housing. In the Labour years, the state increasingly became the child-care provider. As Patricia Morgan comments, "Under Thatcher, the state became the bread-winner for lone parents; under Brown the state became the child carer. The consequences are obvious -- couples are strongly encouraged not to commit to each other because, by doing so, they will lose out financially. Both Conservative and Labour governments also removed any offsetting compensation in the tax system that had previously helped two-parent families." Government policy penalising two-parent families has had a disastrous economic and social effect. Couples who describe themselves as "closely involved" are twelve times more likely than married couples to split up in the first three years of a childs life. There are also higher levels of worklessness and benefit dependency -- lone parent families receiving an average of 66% of their income in benefits and tax credits. Morgan shows how it is clear from international evidence, examining trends over time and by looking at the behaviour of individuals on different levels of income, that the tax and benefits system has caused the increase in lone parent families. Where there are no incentives for lone parenthood, couples tend to stay together, marry and ensure that they can support their children independently of the state. Individuals and couples respond rationally to the incentives they face -- currently the government is giving families perverse incentives, encouraging them not to form stable family units. Major changes in the tax and benefit system are necessary. Benefits to lone parents could be reduced. Also, the perverse incentives in the benefits system that discourage couples from committing together should be offset by a tax system that recognises families. In particular, families should be allowed to allocate the income of the main earner to non-earners in the family for tax purposes. Reforms to the tax and benefits system should be bolstered by reforms to the "no fault" divorce laws that currently allow a guilty party to walk away from their marriage contract whilst imposing financial penalties on the injured party.

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In March 1981, 364 economists agreed to write to "The Times" arguing strongly against the then government's monetary and fiscal policy. However, the Thatcher government decided to ignore these voices and continue the pursuit of policies to defeat inflation and restore fiscal responsibility. To the opponents of the 364, this decision marked a turning point in British post-war economic history: every other post-war government had capitulated and returned to policies of reflation and direct control of prices and incomes in the face of intense political pressures when the going was tough. The 1981 Budget, which precipitated the letter, was also a turning point in other respects: from 1981 there was continual growth, falling inflation and eventually, employment growth. Arguably, the 1981 Budget set the scene for today's benign macro-economic outlook and political consensus in favour of stable prices and fiscal prudence. Amongst the 364 were many economists who play a very prominent part in public life today. Some dissent from their former views and others continue to justify them. In this publication some of the signatories of the letter to "The Times", together with their opponents discuss the key issues raised and its relevance to economic policy today. Included is a list of the original signatories and other relevant historical material.

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This collection of essays examines those areas where the freedom of individual men and women to voluntarily engage in mutually advantageous exchanges is prohibited or restricted by government. The authors critically examine the economic and philosophical rationale for the prohibition of alcohol, the sale of body parts, medicinal drugs, pornography, prostitution, recreational drugs, tobacco and trade in endangered species, among other topics.

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In this paper, Richard A Epstein, Professor of Law at the University of Chicago, explains how there are substantial gains to be made from countries getting 'easy' policy decisions correct. Societies collapse and become impoverished when they do not accept the basic principles of freedom to contract and competition. Even in the developed world these principles have not been accepted in key areas such as agricultural and labour markets. Significant welfare gains could be achieved from liberalisation in both areas. Epstein explains how liberal economists, politicians and civil servants often spend much time discussing 'difficult' cases. While these issues may be important to particular groups in society, the implications of getting 'difficult' cases wrong is not serious. Thus policy-makers and their advisers, Epstein says, would do well to concentrate on the 'easy' cases. In his study, Professor Epstein uses evidence and analysis derived from the disciplines of both law and economics. Professor Geoffrey E Wood provides a commentary that elucidates Epstein's argument and shows how it can be further applied to policy issues relevant to the UK.

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The existing system of land use planning in the UK dates back to the 1947 Town and Country Planning Act and is therefore now well over half a century old. However, there have been indications that government is beginning to take seriously the case for radical reform. This Hobart Paper examines some of the government's proposals against economic evaluation criteria. The principal deficiencies are found to be that the proposals do not properly address important topics such as the internalisation of environmental externalities or land betterment taxation. The author discusses various options for change to the land use planning system primarily designed to introduce voluntary trading and the privatisation of development decisions. He argues that these options, and also market-based instruments such as tradable development rights, have the capacity to achieve a greater degree of allocative efficiency and to take some of the political heat out of the land use planning process.

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In recent years, debates on international trade policy have focused on the role of the World Trade Organization and the two big political and economic powers - the USA and the EU. In this book, the author, an expert in trade policy, argues that this focus must change. Large supra-national institutions have become bogged down and are no longer in a position to drive trade liberalisation. Also, the world's fastest growing economies are those Asian economies that have embraced free trade, in many cases going beyond international requirements. Asian countries - China most conspicuously - have been taking the initiative by pursuing free trade unilaterally. This must continue and spread. The Western developed economies should respond by removing their own protectionism. Unilateral action, not trade negotiations, is the key: the world cannot wait for the WTO. If a unilateral commitment to free trade is to stick, it must be fixed in a general attitude of economic liberalism in the domestic economy. This applies as much to newly emerging economies as to the USA and the EU. In this tour de force of international trade policy, Razeen Sally is realistic about the ability of existing institutions to deliver free trade 'from above', but optimistic about the prospects for the world economy as a result of unilateral liberalisation 'from below'.

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Governments have been taking control of activities - 'public' goods, 'public' utilities, welfare and local government services - which would have been better left to the private sector. Most of them were being privately provided before the state crowded out private initiatives. People will increasingly escape to non-state suppliers unless the government withdraws from many of these activities. Government should reduce its share of national income from 40 per cent to 20 per cent. Arthur Seldon, for many years the IEA's editorial director, argues that attempts to correct market 'imperfections' have created over-government. But the 'escapable power of political government' is up against the 'irresistible economic force of the market'. Sir Samuel Brittan contributes a comment in which he says that Seldon's paper reveals 'a deep belief in the superior ability of ordinary citizens to make their own choices and decisions better than governments or experts or committees'.

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Death duties are now only a minor source of revenue to the British Exchequer (about 1.5 per cent of Inland Revenue receipts) and they now have few committed advocates. Nevertheless they persist, mainly because of inertia. Dr Bracewell-Milnes analyses the traditional criticism of death duties and adds some novel arguments based on the concept of saving in perpetuity -- saving which is never drawn down, whether or not it was initially planned as perpetual. The perpetual saver is a public benefactor because he or she provides the rest of society with a permanent loan at rates chargeable for loans with maturity dates. Taxing perpetual saving will reduce its supply, thus resulting in losses to the rest of society. Inheritance tax does immense economic damage, according to Dr Bracewell-Milnes, and should be abolished. It is 'perverse and counterproductive for its own ostensible purposes, egalitarian or otherwise.

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This volume, edited by Dennis O'Keeffe and with a foreword by David Willetts, explores the relationship between virtue, morality and alternative forms of economic organisation. It should be read by anybody who is interested in the relationship between morality and economic order. Despite the obvious success of the market economy in generating wealth, many commentators accept this success only grudgingly, and unthinkingly criticise the moral underpinnings of capitalist societies. "Economy and Virtue" takes such critics on and finds their criticisms wanting. It analyses how a free society both relies on and promotes values. Unless people can choose between good and evil in conditions of freedom, there is no morality in performing an action that helps another person. A market economy promotes cooperation and restrains selfishness because it relies on contracting by consenting parties, and because its legal system protects the property rights of the vulnerable, just as it does the property rights of the powerful. The authors argue that we cannot judge the market economy by observing the obvious process of 'getting and spending', because this process alone tells us nothing about the motives and character of those involved. There is much more to the market economy than material acquisition: the eminent authors in this volume discuss lucidly and convincingly the moral justifications of the market order.

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Austrian economists regard utilities as exceptional cases where regulation may be justified. The long term aim for a public utility should be to '...turn as much as possible of that industry into a private, competitive and unregulated industry'. In the short term this may mean a 'considerable role for regulation'. Price cap (RPI-X) regulation gives better efficiency incentives to companies than traditional US regulation and passes benefits on to consumers. UK style privatisation and regulation put competition at the forefront whereas '...traditional US regulation for the most part suppressed it.' In electricity, competition in generation has stimulated efficiency improvements but it is still not fully effective. Big generators still set wholesale prices most of the time and the government's 'stricter consents' policy for gas-fired plant hinders entry to generation: that policy is the 'most significant obstacle to a more competitive market'. Competition to supply industrial consumers has resulted in large numbers of companies switching to new suppliers and prices have fallen considerably. Introducing competition to supply domestic consumers was a major logistical exercise. The cost was more than justified by the lower prices and other benefits now flowing from competition. Some of the changes to utility regulation now proposed by the government will not be helpful - such as the qualification to the regulators' duty to promote competition. The next step should be a further transfer, from government to consumers, of control over the utilities. A challenge is to find ways by which competition can substitute for regulation in remaining monopoly sectors.

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In this challenging paper Dr Dick Atkinson asks why local education authorities are needed. Finding reasons lacking, he puts forward a proposal for all schools to be self-governing and thereby removed from the debilitating effects of politicised education.

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In this critique of the DSS's HBAI poverty statistics Dr Richard Pryke suggests six major weaknesses which, once taken into account, give a radically different picture of poverty in the UK.

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This pioneering piece of research analyses the interactions of the tax and benefit systems. The author explains the 'seven deadly traps' which produce disincentives to work and affect family life.

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CONTENTS: Introduction; The Meaning of Independence; Why Independence?; The Data & its Analysis; Conclusions.

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Almost every schoolchild learns that Thomas Edison invented the light bulb. But did he? And if he hadn’t invented it, would we be still living in the dark? Acclaimed author Matt Ridley (The Rational Optimist, The Evolution of Everything) explains that at least 20 other people can lay claim to this breakthrough moment. Ridley argues that the light bulb emerged from the combined technologies and accumulated knowledge of the day – it was bound to emerge sooner or later. Based on his 2018 Hayek Memorial Lecture, Ridley contends that innovation – from invention through to development and commercialisation – is the most important unsolved problem in all of human society. We rely on it – but we do not fully understand it, we cannot predict it and we cannot direct it. In How Many Light Bulbs Does It Take to Change the World? Ridley examines the nature of innovation – and how people often fear its consequences. He dispels the myth that automation destroys jobs – and demonstrates how innovation leads to economic growth. And he argues that intellectual property rights, originally intended to encourage innovation, are now being used by big business to defend their monopolies. Ridley concludes that innovation is a mysterious and under-appreciated process that we discuss too rarely, hamper too much and value too little.

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Ludwig von Mises was one of the greatest economists and political scientists of the twentieth century. He revolutionised the understanding of money, inflation and recessions; comprehensively refuted the arguments for socialism; and, provided a devastating critique of the methodologies of mainstream economics. His contributions to the Austrian School laid the intellectual groundwork for thinkers such as F.A. Hayek, Murray Rothbard and Israel Kirzner. In this book, Eamonn Butler provides a comprehensive yet accessible overview of Mises' outstanding achievements. At a time of economic crisis, this monograph makes it clear that Mises' work is highly relevant today. Indeed, while mainstream economics has been found wanting, the latest recession appears to have been entirely consistent with his analysis. Furthermore, the poor performance of state health and education services can be explained by Mises' Austrian theories. Nevertheless, Mises remains neglected by the economics profession, policymakers and academics. This readable primer explains why his work should be at the core of economic thinking.

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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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When Lord Harris of High Cross (Ralph Harris) died, in October 2006 at the age of 81, the tributes to him described him as one of the 'men who changed Britain'. Friends and opponents alike acknowledged that Ralph, in his role as General Director of the Institute of Economic Affairs (IEA) and in partnership with his friend, Arthur Seldon, had been instrumental in providing the ideas and the intellectual entrepreneurship that sparked the 'Thatcher revolution' of the 1980s, transforming the British economy from one of the worst performers among developed countries to one of the best.This book selects from Ralph's considerable opus, revealing that economics need not always be a 'dismal science'. Economic analysis was, in the hands of Ralph Harris, deployed to great effect in plain language and with a wit and wisdom that made it fun. Colin Robinson's Introduction places Ralph Harris' work in context and provides an invaluable insight into the author's beliefs and personality. This book will be warmly welcomed and read by academics and researchers of economics, politics and the history of ideas as well as those interested in the work of the Institute of Economic Affairs.

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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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