IEA Podcast

• Britain's £36bn Black Hole | IEA Podcast

  In this Institute of Economic Affairs podcast, IEA Head of Media and Linda Whetstone Scholar Reem Ibrahim interviews Executive Director Tom Clougherty and Editorial Director Kristian Niemietz. The conversation covers the deteriorating UK economy, examining zero growth in July, persistent inflation at 3.8%, and the highest August borrowing figures in five years. They discuss the Office for Budget Responsibility's expected downgrade of productivity forecasts, which could create an additional £36 billion fiscal black hole, and analyse why public sector productivity assumptions of four times historical growth rates appear unrealistic.The discussion explores Trump's recent visit to the UK and the nuclear energy agreements that emerged, particularly around mutual recognition of regulatory standards for US companies building nuclear power stations in Britain. They examine why UK nuclear costs are six times higher than South Korea's and advocate for regulatory free-riding and standardisation to reduce expenses. The conversation also covers the UK's declining energy production per capita since 2008 and questions how the country can achieve innovation and growth while using less energy.The podcast concludes with analysis of recent political protests in Britain, including the Unite the Kingdom march and anti-Trump demonstrations, examining what these movements reveal about the direction of British politics. They compare the UK's economic challenges with France's more severe fiscal problems, noting France's unique position as the only country where over-65s have higher average incomes than working-age people. The discussion highlights concerns about prioritising cultural issues over economic growth and questions whether either emerging political movement will support classical liberal free-market reforms. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

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• Why Every British Adult is Now in a Class Action Lawsuit | IEA Briefing

  In this Institute of Economic Affairs briefing, managing editor Daniel Freeman interviews Stephen Dnes, a competition lawyer with 15 years of experience and lecturer at Royal Holloway, University of London, about his new IEA report, titled “Class Act,” examining the rise of class action litigation in the UK. The discussion covers the dramatic growth of opt-out class actions since their introduction in 2015, with current claims totaling between £95-135 billion and potentially affecting every adult in Britain as claimants in multiple cases. Dnes explains how these cases work, from hardcore cartels like alleged salmon price-fixing to more contentious claims involving data usage by tech companies.The conversation reveals significant problems with the current system, including cases taking up to nine years to complete, mixed quality claims, and conflicts of interest between third-party litigation funders, lawyers, and consumers. Dnes highlights the dramatic Merricks versus Mastercard case, which after nine years resulted in a settlement where funders initially attempted to claim £179 million of a £200 million settlement, leaving just 48 pence for each of the 44 million claimants. He explains how the current funding structure creates perverse incentives that can delay settlements and prioritize funder returns over consumer compensation.Dnes proposes market-based reforms to address these issues, particularly requiring funders to pay out a portion of claims upfront to demonstrate their confidence in cases and ensure money actually reaches consumers. Drawing on examples from Germany's emerging system, he argues this would weed out weak claims, speed up proceedings, and align incentives between all parties. The discussion concludes with Dnes expressing cautious optimism about potential government reforms, noting that legal changes are inevitable due to recent court decisions, though the scope of broader reforms remains uncertain.Read “Class Act” here. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

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• Nobel Prize Economist: Why Institutions Matter | IEA Interview

  In this Institute of Economic Affairs podcast, IEA Executive Director Tom Clougherty interviews Professor Simon Johnson, 2024 Nobel Prize winner in Economics from MIT. The conversation explores Johnson's groundbreaking research on extractive versus inclusive institutions and how colonial mortality rates shaped economic development patterns that persist today. Johnson explains how European settlers' different experiences with disease in various colonies led to fundamentally different institutional structures - from the inclusive property rights systems established in North America to the extractive frameworks left behind in West Africa and the Caribbean.The discussion examines how these institutional differences became supercharged during the Industrial Revolution, enabling countries with inclusive institutions to industrialise rapidly while others lagged behind. Johnson draws on his family's Sheffield manufacturing background to illustrate how rule of law and property rights protection enabled Britain's industrial middle class to flourish. They also address why bad institutions persist despite our understanding of their harmful effects, with Johnson arguing that powerful elites often benefit from extractive systems and resist changes that would broaden economic opportunity.The interview concludes with Johnson's concerns about institutional degradation in modern America, the risks of AI oligopoly creating new forms of central planning, and Europe's economic stagnation. Johnson advocates for entrepreneurship, competition, and decentralised innovation while warning against both technological monism and fiscal irresponsibility. He calls for a return to fiscal conservatism and emphasises the importance of inclusive institutions that empower entrepreneurs and support shared prosperity rather than concentrated wealth extraction. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

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• Why China's Economy is Failing | Ian Williams | IEA Interview

  Join IEA Managing Editor Daniel Freeman in conversation with Ian Williams, author of "Vampire State: The Rise and Fall of the Chinese Economy," for an analysis of China's mounting economic challenges. Williams, a veteran journalist with 20 years of experience covering China as a foreign correspondent for Channel 4 News and NBC, delivers a chilling account of how the world's second-largest economy is facing an unprecedented crisis of sustainability.In this wide-ranging discussion, Williams exposes the fundamental flaws in China's economic model - from the burst property bubble that once accounted for a third of the economy to the systematic manipulation of growth statistics that he likens to "one of the greatest works of contemporary Chinese fiction." The conversation explores Xi Jinping's shift from economic pragmatism to authoritarian control, the ghost cities littering China's landscape, and why the Communist Party has effectively "criminalised pessimism" about economic data. Williams argues that China's leaders have created a system so dependent on unsustainable drivers like property speculation and wasteful infrastructure investment that transition to genuine innovation-led growth may be impossible under current leadership.The discussion also delves into China's use of economic coercion as a geopolitical weapon, the demographic time bomb facing the nation, and why Xi Jinping's ambitious plan to make China a football superpower serves as a perfect metaphor for the limitations of top-down innovation in an authoritarian system. This is essential viewing for anyone seeking to understand the real state of China's economy beyond the official propaganda.Buy Vampire State here. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

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• The Splintering of British Politics: Left and Right in Crisis

  In this Institute of Economic Affairs podcast, Communications Director Callum Price interviews Executive Director Tom Clougherty and Editorial Director Kristian Niemietz. The conversation examines Conservative leader Kemi Badenoch's offer to help Labour cut the welfare bill and her party's return to fiscal conservatism. They discuss whether this represents genuine commitment to balanced budgets or political positioning, questioning how radical the Conservatives are prepared to be when they refuse to touch entitlements for older voters like the state pension and triple lock.The discussion turns to Labour's internal divisions as the party faces a deputy leadership contest that exposes tensions between pro-growth and spending-focused factions. They analyse how Labour's abundance agenda has stalled, with policies like the Employment Rights Bill and Renters Rights Bill undermining growth objectives. The hosts examine whether Labour's early optimism about deregulation was merely skin deep, and explore the emerging split between the Treasury's fiscal conservatism and other departments' regulatory expansion.The conversation concludes with an examination of the Competition and Markets Authority's plans to target Google and Apple under new strategic market status powers. Tom Clougherty argues this represents a fundamental misstep in competition policy, focusing on static market share measures rather than dynamic innovation. They discuss how Britain missed the opportunity for post-Brexit regulatory divergence, instead adopting even more interventionist approaches than the EU. The broader theme emerges of Britain's shift from central planning to bureaucratic control, with the regulatory state strangling entrepreneurship and innovation across multiple sectors. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

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