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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What can today's behavioural economists learn from the classical liberals of the past? Here, Erik Matson offers critical reflections on what he calls 'the new paternalism' - a modern-day approach to policy-making that aims to make individuals better off, when judged by their own standards.

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Many people mistakenly – but perhaps understandably – believe that ‘free banking’ means paying no charges for their bank accounts. But ‘free banking’ is really an historic term to describe a system in which banks issue their own notes – without the presence of a central bank (such as the Bank of England in the UK). For some, this may seem an alien concept. But free banking has already been explored in many countries around the world. The Experience of Free Banking (first published in 1992) analyses the impact of free banking in such countries as Australia, Canada, France, the US and more. And this revised second edition widens and updates its scope to encompass free banking in Belgium, Italy, China and further afield. Featuring chapters from distinguished economists around the world, it also incorporates an innovative guide, providing an invaluable starting point for researchers delving into the historical impact and effectiveness of free banking – or assessing its future potential.

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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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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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