The Capitalist

This week on The Capitalist, Marc Sidwell speaks to the writer and CapX columnist Jonn Elledge. His new book ‘31 Inventions That Built Our World’, surveys the technologies – from sewers to lifts – that make urban life possible. They discuss what it takes to keep a modern city running, and whether we are losing our nerve when it comes to building twenty-first century infrastructure.
They also talk about the PT Barnum stunt that convinced the public it was safe to ride in a lift, why nowhere on Earth held more than about a million people until the 1800s, the speed limit that stood in the way of commuting and why market pricing – not more regulation – is the answer to the mess we’ve made of urban space.


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Compliance costs British business around £52 billion a year. Damian Pudner asks how much of that is wasted on rules nobody has bothered to think through? Every hour spent on paperwork is an hour not spent selling, investing or training staff. Ministers are held to account when they spend public money. They should face the same scrutiny when they spend everyone else’s time.
Each week we bring you an example of the best writing from CapX, read aloud. For hosted conversations, listen to The Capitalist, every Wednesday.
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Are Nimbys a threat to national security? Britain’s inability to build houses and infrastructure is rightly at the heart of our domestic political debate. Dalibor Rohac thinks it needs to be seen as a geopolitical failing as well.
This week on The Capitalist, Rohac, incoming director of research at Globsec, discusses his new book ‘Unshackled: How Economic Growth Can Defeat the World’s Dictators’. The conversation also covers how to defend Western institutions while still building fast, what Mancur Olson can tell us about vetocracy, whether letting China into the WTO was a mistake and why chasing foreign students out of American universities is an own goal.
Rohac’s argument is that the accumulated sludge of special interests and regulatory stasis which reduces growth and stops houses and reservoirs being built has serious security implications – such as the shortfall in defence production across the alliance. Free markets can deliver in ways that more centralised systems cannot, but only if the shackles are taken off.
He remains an optimist, on the grounds that free societies have a remarkable power for self-correction. But who will stand up as a new champion of the Western order? A new Reagan or Thatcher may be harder to find.


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Britain's national debt has just passed £3 trillion for the first time – and John Penrose says it's time to get it under control. But while Andy Burnham ruled out breaking Rachel Reeves's fiscal rules to borrow more, he's asked his Chancellor to find 'wriggle room' within them.
Penrose argues that what we need instead is full transparency about the state's liabilities. Any honest reckoning would include the future cost of the state pension, already running at over 220% of GDP. Rather than fudging the figures yet again, Burnham should build Britain a proper national balance sheet. With an honest set of numbers, we can finally have a proper conversation about how to reduce the stock of debt.
Each week we bring you an example of the best writing from CapX, read aloud. For hosted conversations, listen to The Capitalist, every Wednesday.
Get full access to the CapX Briefing at briefing.capx.co


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Richard Hanania had a ringside seat for the rise of MAGA, as his Substack essays on anti-woke issues gained traction at the highest level of the new American Right. He had high hopes for Donald Trump’s second term, and coined the term ‘Tech Right’, hoping for an administration that worked productively alongside some of the smartest people in Silicon Valley. In practice, he says the second Trump presidency has proved ‘a nightmare scenario’.
Hanania’s new book ‘Kakistocracy’ is an attempt to understand what went wrong – and the wider lessons as populism continues to gain ground around the world. He argues that populists, for all their promises of overthrowing corrupt elites, often end up replacing a flawed system with something far more damaging – ‘rule by the worst’.
On this model, elites can be foolish and subject to groupthink, but they are held in check by a status game that rewards honesty and truth-seeking. Populists, by contrast, gain power from their unfiltered relationship with voters, which makes corruption and lies easier to get away with, and encourages zero-sum thinking.
But what about the pro-market successes of a populist like Javier Milei? And what are the risks for the UK, where Reform UK have a real prospect of forming the next government? This week on The Capitalist, Hanania gives his take. He doesn’t rule out the prospect that a party like Reform could bring in radical reforms that are good for Britain. But it is a strategy with a big warning label: once these forces are loose, nobody controls where they end up.


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