With Joe Biden now sworn in as President, attention outside the US turns to possible changes in US foreign policy. This and related questions were explored in the first of a series of IEA videos on International Relations, which went out on Thursday. Classical liberals probably feel more sympathy towards Trump on foreign policy than anywhere else, given that he did not start any wars or try for armed interventions (unlike his predecessors). The Biden administration is likely to move away from his unilateralist approach to try to sustain and restore the international rules based political order, working through institutions such as NATO and the WTO.
The problem for him is that if this amounts to an attempt to restore the leading role of the United States and the EU as rule-setters within that order, then it will fail due to resistance from the rising powers in Asia plus Russia. Realistically, and in historical perspective, we are now moving away from a world dominated by one or two powers to a multi-polar one, of the kind familiar to students of classic diplomacy, and one where Asia has resumed its historic position as the dominant region of the world economy and civilisation.
The big question from a classical liberal standpoint is what the dominant influence will be on US foreign policy – will it be the ideological tradition of Wilson and the neoconservatives, which sees the US as having a mission to lead and even transform the world, or will it be more the realist tradition of Kennan and Kissinger? We will know which it is from the appointments but we must hope it is the latter, given the disastrous results of the former in recent years.
Finally, we should mention that the IEA is launching a series of short video introductions to foundational economic concepts, starting on Monday, and presented by myself.
Dr Steve Davies
Head of Education, Institute of Economic Affairs
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ECONOMICS 101
As Steve mentioned, the IEA will tomorrow launch Economics 101, the first of a two-part series of 10-minute economic explainers.
The series – providing 33 films in total – will cover everything from basic economic theory to important historical case studies; guaranteeing viewers will receive a comprehensive understanding of the fundamentals of economics.
These videos will be posted on the IEA's YouTube channel free of charge, thanks to a generous donation from The Monnery Trust. Thousands of pupils and students across the world are not currently receiving face-to-face learning or receiving learning materials due to government responses to the Coronavirus. It is important that they be given unlimited access to these useful educational resources.
Professor Syed Kamall, Academic and Research Director at the Institute of Economic Affairs said:
"As an educational charity, the Institute of Economic Affairs is excited to be launching our new Economics 101 online courses for students worldwide, for free, thanks to the generosity of The Monnery Trust.
"We hope that students of all levels will find these explainer videos useful to gain a greater understanding of the basics of economics and the debates between different schools of economics. We also hope that school and university students find them complementary to their coursework, especially during lockdown."
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LOCKDOWN SHOWDOWN
This week, IEA Head of Lifestyle Economics Christopher Snowdon went head-to-head with our Head of Regulatory Affairs Victoria Hewson to discuss lockdowns, lockdown scepticism and the Covid exit strategy, live on the IEA YouTube channel. IEA Head of Political Economy Dr Kristian Niemietz chaired the debate, which you can watch here.
The debate came after Christopher wrote an article for Quillette magazine, in which he argued that the conversation among many of the noisiest lockdown sceptics has become decidedly "cranky", and that this lockdown is, on balance, the right course of action. Victoria responded to Christopher's claims in an article for The Critic. She argued that "those who attack lockdown sceptics are firing at the wrong target," and that many of the government’s measures have been brought in with "minimal parliamentary scrutiny" and have incurred an "incalculable cost to mental health and wellbeing, and to democratic norms and civil liberties".
IEA Head of Media Emily Carver also voiced her concerns over the government's lack of coherent plan for easing lockdown in an article for Conservative Home.
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MAKE THE (LOCKDOWN) BREAKTHROUGH!
Looking for a lockdown project? Why not take part in our Richard Koch Breakthrough Prize?
The competition is looking for ways of helping ‘left-behind’ Britain – and there’s a first prize of £50,000 for the winning essay. The competition judges are seeking the best answers to this question:
"In the current severe economic climate, what pro-market, pro-enterprise policy would be the best way of supercharging growth, employment and living standards in 'left behind' Britain?"
Why not make lockdown work for you? You can find out all the details at breakthroughprize.org.uk.
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i ON THE MEDIA
Benefit squeeze... At the start of the week, a non-binding Labour motion calling for the £20 weekly Universal Credit top-up to be kept in place beyond 31 March passed by 278 votes to none after a Commons debate.
IEA Editorial and Research Fellow Professor Len Shackleton argued that "across-the-board benefits increases" are not well-targeted and that the government cannot keep acceding to every demand of this kind if it is to bring any discipline to its spending. Len's comments were featured on the BBC News Homepage, and can be read in full here.
IEA Director General Mark Littlewood spoke to host Iain Dale on LBC, debated the issue on BBC Newsnight, and shared his views on BBC Scotland. IEA Economics Fellow Julian Jessop spoke to host Nick Ferrari on LBC, while Len also appeared on Channel 5 News and talkRadio.
No magic money tree... Reports have been circulating that Chancellor Rishi Sunak is considering raising Corporation Tax in an attempt to plug the financial black hole. However, Mark Littlewood branded the idea "illogical and counterproductive" after the government has spent so many billions supporting businesses during the pandemic. Instead, we should focus on boosting economic growth. Mark's comments were featured in The Telegraph, and City AM.
And Julian Jessop spoke to The Telegraph, warning that "now is not the time to raise any sort of tax", adding that in the context of Brexit and disruption at the borders, Corporation Tax rises "might tip the balance for companies who might choose to relocate overseas".
Our economic recovery was debated and explored on this week's Live with Littlewood, where a stellar panel of guests also discussed the inauguration of Joe Biden, Brexit, and whether the government will set about remodelling itself as the "Singapore of Europe". Host Mark Littlewood was joined by Christian Calgie, Reporter at Guido Fawkes; Terry Kibbe, CEO of Free the People; Matt Kilcoyne of the Adam Smith Institute; John O'Connell of the TaxPayers' Alliance; Allie Renison of the Institute of Directors; Calvin Robinson, Senior Fellow at Policy Exchange; the IEA's Christopher Snowdon; and Tom Whipple, Science Editor at The Times. Catch up on our first show of 2021 here!
BBC bombshell... It was reported by the National Audit Office this week that the BBC's falling audience figures pose a growing risk to the licence fee funding model. IEA Senior Academic Fellow Professor Philip Booth argued that the licence fee is "anachronistic and in dire of need of reform". Instead, Philip argued, the BBC should become a subscriber-owned mutual. His comments were featured in the Daily Express, which you can read in full here.
In an article for The Spectator, IEA Director of Communications Annabel Denham argued that with viewing figures dwindling, the BBC needs to face up to the truth about the licence fee's future and embrace an alternative funding model.
Both Mark Littlewood and Annabel separately appeared on talkRadio to discuss BBC reform.
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BUDGET CHALLENGE
The deadline is fast approaching to enter the IEA and Vinson Centre Budget Challenge! It's your chance to put yourself in the shoes of the Chancellor and win £1,000 for you and your school!
Teams of up to four A-level students can submit a Budget with taxation and spending policy for the UK in the coming financial year, as well as a brief analysis of the macroeconomic conditions with a broad policy and strategy response.
Please submit your entry to [email protected] by Friday 29th January 2021. Find out more here.
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AFTER THE STORM
The Hayek Memorial Lecture has been one of the highlights of the IEA calendar since 1988…and 2020 was no exception!
With light at the end of the tunnel, we will begin to analyse in more detail the global and domestic responses to Covid-19, and reflect on the lessons learned. In this fascinating lecture, Dr Steve Davies, who has presented some of our most watched films of the year, discusses ‘The World after the Pandemic’.
Catch up on the lecture here.
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YOU'RE INVITED
* In Conversation with The Rt Hon Jacob Rees-Mogg
On Tuesday January 26th at 6pm, the Institute of Economic Affairs will host a discussion with The Rt Hon Jacob Rees-Mogg MP in the latest episode of our In Conversation series with senior figures from across public life. The event will be chaired by IEA Director General Mark Littlewood.
Jacob has been the Member of Parliament for North East Somerset since 2010. Since 2019 he has served as the Leader of the House of Commons and Lord President of the Council. Before his elected positions, Jacob had a successful career in finance.
* Teacher's Seminar: Incorporating the history of economic thought into the curriculum
On 10th February, 1.45-5pm, the Institute of Economic Affairs and the Vinson Centre for the Public Understanding of Economics and Entrepreneurship at the University of Buckingham will be hosting a free to attend teacher's seminar on incorporating the history of economic thought into the curriculum. The seminar is aimed at A-Level/IB/Scottish Higher teachers of Economics and related subjects.
Sign up for your place now, and if you have any questions, please email Brittany Davis at [email protected], and include the name of the school you teach at.
*Upcoming Sixth Form conferences
Throughout February and March, the IEA and the Vinson Centre for the Public Understanding of Economics and Entrepreneurship at the University of Buckingham will be hosting a number of free conferences for Sixth Form students. Find out more here.
You can sign up for any of our planned conferences this term and if you are interested in partnering on a future event please drop Brittany a line.
* IIMR Money Webinar series
The Institute of International Monetary Research Money Webinar Series continues this year with three upcoming sessions.
On Wednesday 27th January, Steve Hanke of Johns Hopkins University will give a talk on 'Alternative monetary regimes to fight inflation in emerging economies: dollarisation, currency boards and monetary competition'. On Wednesday 10th February, Dr Dimitrios Tsomocos of the Said Business School will lead a discussion on 'The role of money in modern macroeconomic modelling'. And on Wednesday 24th February, Gabriel Stein of Stein Brothers (UK) will present on 'Macroeconomic forecasting and inflation leading indicators; 2021-22'.
You can register here.
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