Democracy is an illusion! It’s become a political system fostered by the élite, for the élite, in order to fool the people that they have a stake in the system. In actual fact, they have virtually none. The whole political system in the modern era, despite having noble beginnings, is now used to benefit the few at the expense of the many. – Mark Alexander, June 29, 2018
Nov 4, 2024 | Join Sir Tim Lankester, Margaret Thatcher's first private secretary for economic affairs, as he discusses his new book "Inside Thatcher's Monetarism Experiment" with IEA Executive Director Tom Clougherty. Drawing from his first-hand experience in the early years of the Thatcher government, Sir Tim examines the adoption of monetarism as the primary tool for fighting inflation in 1979-81, arguing that while the broader economic reforms of the period were successful, the strict adherence to monetary targets led to unnecessarily high unemployment.
In this discussion, Sir Tim reflects on his transition from studying Keynesian economics at Cambridge to becoming what he calls a "disbelieving monetarist" in government. He provides insights into Margaret Thatcher's unwavering conviction in monetarist theories, her hands-on involvement in monetary policy, and her qualities as a boss. The conversation also explores the economic context of the 1970s, including high inflation, industrial unrest, and the 1976 IMF loan that set the stage for the monetarist experiment.
The event concludes with a lively Q&A session covering topics including current monetary policy, quantitative easing, and the long-term impact of the Thatcher government's economic reforms. Sir Tim offers a balanced assessment of the period, praising the supply-side reforms while maintaining his criticism of what he terms "hard monetarism" in the early years of Thatcher's premiership.
Oct 30, 2024 | In an analysis of the government's latest budget, Tom Clougherty, Executive Director and Tax Policy Specialist, breaks down the concerning implications of a massive £40 billion tax increase, with £25 billion coming from employer National Insurance contributions alone. With taxes already at historic highs, Clougherty explains how these changes will likely suppress wages and reduce job opportunities across the private sector.
Despite the change in government, Clougherty identifies a troubling continuity in economic policy, with an increasingly state-centric approach to growth. He critiques the administration's heavy reliance on public spending and capital projects, arguing this comes at the expense of private sector innovation and investment – the true engines of sustainable economic growth.
Drawing from years of economic evidence, Clougherty challenges the government's claim that workers won't be affected by these tax increases. He demonstrates how employer National Insurance hikes inevitably get passed through to employees in the form of lower wages and reduced benefits, adding to existing cost of living pressures. This comprehensive analysis offers vital insights for businesses and workers alike as they navigate the implications of the new budget.