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In today’s newsletter:
Proven right on Online Safety?
Trade madness continues
Clipping the BMA’s wings
The Online Safety Act debate often felt incredibly lonely. As a small set of free speech advocates stumbled around Westminster over many years warning about the legislation, eyes would simply glaze over what many considered hyperbolic claims.
At one particularly memorable party conference panel, I found myself seated next to two members of the parliamentary committee responsible for scrutinising the legislation. As I raised censorship issues, their expressions could best be described as disdainful. There was shock that anyone might dare to question a law designed to “protect children.”
In a separate meeting with a senior Ofcom official responsible for implementing the law, I was politely assured that excessive implementation is never a problem with regulation, leaving me utterly dumbfounded.
Last week, key provisions of the Online Safety Act requiring the age-gating of adult material and content harmful to children came into force. The results were entirely predictable, and for those who follow the IEA’s work closely, well-understood:
In June 2022, in an IEA briefing paper [ [link removed] ], Victoria Hewson and I warned that these requirements would result in legitimate information on issues like war and violence being hidden by default, under-18s losing access to swathes of content, non-UK services blocking British users, and VPN usage soaring.
That’s precisely what has happened. From Gaza and Ukraine videos, through to grooming gang trial descriptions, [ [link removed] ] posts have been widely hidden on X and Reddit. There have already been dozens of British sites shut down and overseas sites blocked for UK users [ [link removed] ], and VPNs are now the most downloaded apps [ [link removed] ].
This is very much just the start of the issues with this law. As I discussed in my thread on X [ [link removed] ], the threats to user speech and encryption, as well as regulatory powers for Ofcom and the Secretary of State, are immense. We have entered a new era of Britain’s industrial digital censorship complex.
Rather than engage with these concerns, Technology Secretary Peter Kyle has likened critics of the legislation to notorious sex offender Jimmy Savile. Such rhetoric has only deepened frustration. Across the political spectrum, the appetite for censorship is wearing thin. From Owen Jones to Nigel Farage, voices are uniting in an unlikely chorus: repeal the Online Safety Act.
The battle is far from over. But perhaps, just perhaps, a glimmer of light is breaking through the darkness ahead.
Matthew Lesh
Public Policy Fellow
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IEA Podcast: Executive Director Tom Clougherty, Editorial Director Kristian Niemietz, and Director of Communications Callum Price discuss the Online Safety Act, Ofgem’s plans for progressive bills, and whether Britain really is broken – IEA YouTube [ [link removed] ]
Trade madness continues
Responding to US tariffs, Tom Clougherty said:
The madness continues in American trade policy. Trump’s latest tariffs have no coherent economic rationale and are, first and foremost, an attack on American consumers.
These tariffs are a massive tax increase which will harm American consumers and businesses. Ford, which manufactures more cars in America than anyone else, expects to pay $2bn in tariffs this year. But this is not really about economics; it is about punishing countries which displease the president, and rewarding those who toe the line. Using executive power in this way is an affront to liberal democracy and the rule of law.
The British government deserves some credit for its handling of the situation. But that doesn’t change the fact that our trade with the United States is far less free than it was before President Trump was re-elected.
Free trade remains an essential component of economic efficiency, international competitiveness, and rising living standards. Government-imposed trade barriers only ever enrich special interests; the rest of us bear the cost.
Trump’s tariffs are an ‘affront the rule of law’, says think tank, [ [link removed] ]The Telegraph [ [link removed] ]
Trump’s latest tariffs have no coherent economic rationale [ [link removed] ], [ [link removed] ]X [ [link removed] ]
News and Views
Public sector productivity growth is a hollow victory [ [link removed] ], Economics Fellow Julian Jessop, The Telegraph [ [link removed] ]
The public sector is becoming an increasingly unmanageable Leviathan. The Government is taking on more and more functions, while backtracking on commitments to reform in many other areas – from planning regulations to welfare spending. Some real action is needed soon to keep the cost of public services from spiralling out of control.
We must clip the BMA’s wings [ [link removed] ], Editorial and Research Fellow Professor Len Shackleton, The Telegraph [ [link removed] ]
But many more liberal jurisdictions place considerable constraints on the right to strike. In some US states – including New York, Florida and Texas – doctors in public hospitals cannot strike. The same applies in several Australian states, while any industrial action in other states must go through complicated Fair Work Commission procedures. Where doctors’ strikes are permitted there are usually requirements for notice and for minimum service levels – the latter is being abolished here by the Employment Rights Bill. In Canada, doctors in some provinces may be obliged to submit to binding arbitration.
And that, ladies and gentlemen, is the laffer curve [ [link removed] ], IEA on X [ [link removed] ]
The idea that somebody could sue us for breathing is clearly absurd [ [link removed] ], Energy Analyst Andy Mayer, Talk TV [ [link removed] ]
UK’s Productivity Crisis: Why Britain Can’t Grow [ [link removed] ], [ [link removed] ] Director of Communications Callum Price interviews economist Vicky Pryce, IEA YouTube [ [link removed] ]
The wealth raid gamble that isn’t paying off [ [link removed] ], Julian Jessop quoted in The Times [ [link removed] ]
Julian Jessop… said that many had sold assets sooner than they otherwise might have done because they were worried that a Labour government would ramp up wealth taxes.
“There is plenty of anecdotal evidence that Labour’s tax policies are pushing the limits of the Laffer Curve,” he said. “This is also consistent with economic theory and past experience — most countries that adopted wealth taxes have since abandoned them.”
How the Soviet Union Really Collapsed | Part 3 | Rise & Fall of the Soviet Economy [ [link removed] ], Managing Editor Daniel Freeman interviews Aymen Aulaiwi, IEA YouTube [ [link removed] ]
Overbearing laws are encouraging a breakdown in trust [ [link removed] ], Head of Lifestyle Economics Dr Chris Snowdon, The Critic [ [link removed] ]
By driving another wedge between the state and the individual, it further normalises rule-breaking in a country where casual lawlessness is becoming part of daily life. A law-abiding society cannot long endure if the median citizen thinks that the law is an ass.
In defence of the RNLI, [ [link removed] ] Editorial and Research Fellow Professor Len Shackleton, CapX [ [link removed] ]
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