Logo


** Historical narratives shape economic ideas
------------------------------------------------------------

By Tom Clougherty, IEA Executive Director

This week the IEA published Imperial Measurement ([link removed]) , a short new book by our own Kristian Niemietz, which asks whether – and to what extent – Britain and other Western powers benefited from colonialism. It is an easy and informative read, and I highly recommend it.

One curious aspect of the contemporary debate about the British Empire is that the ‘decolonisers’ of today sound a lot like the imperialists of old when it comes to economics – in the sense that they are convinced the empire brought huge and lasting economic benefits.

By contrast, classical liberals going back to Adam Smith and Richard Cobden have tended to oppose colonialism, both on moral grounds and because they recognise that while some private interests benefit enormously from imperial exploitation, colonising countries as a whole do not.

We are talking about concentrated benefits and diffuse costs here, an all-too-familiar story when it comes to the abuse of state power. And that’s to say nothing of the very real and lasting harm that the colonies themselves suffered.

Britain’s imperial past might seem an offbeat topic for an IEA publication. But as Hayek pointed out ([link removed]) , people’s understanding of history is often central to their views on economics and political philosophy. So it is important that what Kristian calls ‘the Marx-Williams thesis’ – that our prosperity is built on exploitation rather than voluntary exchange – does not go unchallenged.

Many other historical misunderstandings have real-world policy implications. Milton Friedman’s greatest intellectual contribution ([link removed]) was to show (with Anna Schwartz) that the Great Depression ([link removed]) was less an indictment of capitalist excess, and more a story of disastrous monetary mismanagement. Yet the wrong lessons are still too frequently drawn.

The closer you get to the present day, moreover, the murkier things become. How should we understand the Global Financial Crisis and subsequent Great Recession ([link removed]) ? What impact has Brexit really had? And how should we think about the coronavirus pandemic and the extraordinary government responses to it?

These are debates that will rumble on for years and probably decades. What we can be sure of is that the dominant narratives that emerge – ‘both when they are right and when they are wrong’ ([link removed]) – will have an outsized effect on the climate of economic ideas.
[link removed]


** Empire and slavery did not make Britain rich, finds new IEA book ([link removed])
------------------------------------------------------------

Colonialism and the slave trade were, at best, minor factors in Britain’s prosperity and may have been net lossmakers.
* An increasingly prominent anti-capitalist narrative claims that empire and slavery are the basis of Britain’s wealth.
* Colonial trade was a small proportion of Britain’s economy, and colonial profits can only have financed a modest share of Britain’s investment and capital formation (perhaps around 7%-15%). Most economic activity was domestic and international trade with Western Europe and North America.
* Much of Britain’s trade with its colonies could still have happened absent the empire.
* Slave-based sugar plantations added just under 2.5% to the value of the British economy at its peak, less than the share of sheep farming.
* British imperialism came with significant military and administrative costs and necessitated higher taxes, which could have outweighed any benefits.
* Business and Trade Secretary Kemi Badenoch says, ‘This clear-headed analysis from the IEA is a welcome counterweight to simplistic narratives that exaggerate the significance of empire and slavery to Britain’s economic development.’

Press Release ([link removed])
Read the full publication ([link removed])
Share on Twitter ([link removed])

Ingenuity and industry made Britain a success, not slavery ([link removed])

Editorial Director and author Kristian Niemietz, The Daily Express ([link removed]) & The Times ([link removed])

Concentrated benefits, dispersed costs… Some people benefitted enormously from colonialism and slavery. But that is not evidence of either boosting wealth overall.
[link removed]
[link removed]

Colonialism’s small contribution ([link removed])

Kristian Niemietz, GB News ([link removed]) & Times Radio ([link removed]) ; Director of Public Policy & Communications Matthew Lesh, Times Radio; Comunications Officer Harrison Griffiths, GB News ([link removed]) ; & Communications Officer Reem Ibrahim, GB News ([link removed])

Fashionable myths… The share of economic activity which came from slavery and colonial trade was relatively small.
[link removed]
[link removed].

‘British ingenuity’ not colonialism drove UK growth ([link removed])

The Independent ([link removed]) , The Times ([link removed]) , London Evening Standard, ([link removed]) The Daily Mirror, ([link removed]) The Daily Telegraph ([link removed]) , The Sun & The Daily Mail ([link removed])

Institutions matter… The strong liberal institutions that cultivated free markets in the UK played a far bigger role in facilitating the industrial revolution than slavery or empire.

Did Empire and Slavery make Britain Rich? | IEA Explainer ([link removed])

IEA YouTube ([link removed])
[link removed]
[link removed]

IEA Panel Discussion on Colonialism – the foundation of Western prosperity? ([link removed])

Panel: Dr Victoria Bateman, Lecturer in Economics at Gonville and Caius College, Cambridge | Dr Lawrence Goldman, former Director of the Oxford Dictionary of National Biography | Dr Zareer Masani, writer and broadcaster | Dr Kristian Niemietz

Date: 28th May

Time: 18:30 - 21:00

Location: 2 Lord North Street
RSVP ([link removed])

IEA Latest.
[link removed]

Let’s be honest, there are no easy answers to worklessness ([link removed])

Matthew Lesh, City AM ([link removed])

In search of solutions… The government’s new welfare proposals might help get some people back into work but they’re unlikely to solve the long-term unemployment problem.
[link removed]


** Rishi Sunak's Crackdown: Reforming the UK Disability Benefits System ([link removed])
------------------------------------------------------------

Matthew Lesh interviews Editorial & Research Fellow Len Shackleton, IEA YouTube ([link removed])

Double whammy… Britain’s problem with long term unemployment imposes not just the direct cost of a higher welfare bill, but also the lost wealth from greater employment.
[link removed]

How Inspiring Leaders Use The Power Of Storytelling To Spark Innovation ([link removed])

Free Trade Fellow Alexander Hammond, Forbes ([link removed])

Heroes of Progress… In his new book, Alex tells the stories of 65 extraordinary individuals whose efforts helped to save lives and boost living standards across the world.

Buy a copy of Heroes of Progress: 65 People Who Changed the World ([link removed]) .
[link removed]


** Quality of education matters more than quantity ([link removed])
------------------------------------------------------------

Harrison Griffiths, Sky News ([link removed])

Mixed evidence… Empirical research has found no causal link between longer school days and better educational outcomes.
[link removed]

Behavioural Economics & Paternalism Critique | The Swift Half ([link removed])

Head of Lifestyle Economics Christopher Snowdon interviews Mercatus Center Senior Research Fellow Erik Matson, IEA YouTube ([link removed])

New paternalism meets older wisdom… As Erik’s recent IEA research ([link removed]) shows, so-called ‘new paternalist’ policies like tobacco packet warnings share many of the same problems as classical nanny statism.

IEA Insider.


** The Reality of Socialism: Singapore | Mini-Documentary ([link removed])
------------------------------------------------------------

Since independence in 1965, Singapore has gone from one of the poorest economies to one of its wealthiest. Learn more about the unique model that powered its economic transformation with the latest mini-documentary from the Realities of Socialism ([link removed]) project.
[link removed]


** Camp Vinson ([link removed]) 2024
------------------------------------------------------------
[link removed]

The IEA, Vinson Centre, and Institute of International Monetary Research are offering a residential programme at the Vinson Centre, University of Buckingham.

The programme, targeted at undergraduates interested in classical liberalism, includes a series of lectures, seminars, debates, discussions, and social activities.

Dates: 17th - 21st June 2024

Location: Vinson Centre, University of Buckingham
Apply for Camp Vinson ([link removed])


** Applications for Freedom Week 2024 are OPEN! ([link removed])
------------------------------------------------------------

Freedom Week is an annual, one-week seminar which teaches students about classical liberal, free market, neoliberal and liberal perspectives on economics, politics, history and society. It is open to over-18s who are currently attending or about to start university. The week is entirely free to attend: there is no charge whatsoever for accommodation, food, tuition or materials.

Dates: 19th - 23rd August 2024

Location: Cambridge
[link removed]
Apply for Freedom Week ([link removed])
[link removed] [link removed] [link removed] [link removed] [link removed] [link removed] [link removed]
Logo

© 2024 Institute of Economic Affairs. All rights reserved.
You are receiving this email from the Institute of Economic Affairs
Registered in England 755502, Charity No. CC/235 351, Limited by Guarantee

View in browser ([link removed]) | Update ([link removed]) | Unsubscribe ([link removed])