* TALKING POINT, PROFESSOR LEN SHACKLETON
* LOCKDOWN LESSONS
* INFLATION BITES
* INSPIRING FREEDOM AWARD
* iN THE MEDIA
* IN CASE YOU MISSED IT
* IEA BOOK CLUB EVENTS

How have this week’s rail strikes been for you? For many, it has meant a reversion to lockdown-style working from home – rather comfortable, especially given some nice weather. For others, however, it has meant hellish commutes, disrupted production, and for London’s restaurants, theatres and other entertainment businesses losses amounting to many millions of pounds.

Given that our erstwhile transport guru, Richard Wellings, has left the IEA, I have by default become the IEA’s ‘rail expert’. It’s not a description I deserve, though I do know a bit about both this current dispute and the wider industrial relations set-up.

[link removed]

I’ve been doing quite a few radio and TV interviews where I have tried to point out how atypical the rail unions are. I appeared on BBC Politics Scotland ([link removed]) , TalkTV ([link removed]) , GB News and BBC Radio Hereford and Worcester.

The national unionisation rate has fallen to its lowest level since data were collected in the current format, with just 23 per cent of employees in unions. 60 per cent of these are in the public sector. There are a lot more self-employed people than there are private sector union members.

The rail disputes are understandable given that two years of on-off lockdown have disrupted normal pay settlement processes. But the railways have been massively subsidised by the taxpayer over this period, and cannot expect such largesse to continue. Revenue is down to around 80 per cent of pre-Covid levels, and patterns of use have changed sharply. The rail unions’ apparent assumption that things can continue as before while their members receive an inflation-busting pay increase is surely not going to happen.

The rail strikes are only one part of what is being called a ‘summer of discontent’, with bus drivers, teachers, some NHS workers, civil servants, local government workers and even barristers striking or threatening industrial action. Several interviewers, most of whom were in rompers at the time, have asked me if this means we are going back to the seventies. Probably not. In 1979, over half the workforce were in unions, 5 million were in ‘closed shops’ where union membership was compulsory and 25 million working days were lost to strikes. In 2018, the last year for which we have figures, days lost amounted to about 1 per cent of that total.

[link removed]

The seventies were economically challenging, certainly. But despite the strikes and the gross inefficiencies of nationalised industries, it was a time of much greater personal freedom than today, when people are scared to speak out and there is a premium on conformism. Air travel was much easier. Most private businesses were subject to far fewer constraints, with health and safety and employment regulation in their infancy. Mortgages were cheaper and easier to obtain for young people. Universities were expanding and the arts, theatre and music – from glamrock to punk to classical – were in the ascendancy.

Perhaps going back to the seventies wouldn't be such a bad idea after all?

Professor Len Shackleton
Editorial and Research Fellow, Institute of Economic Affairs

LOCKDOWN LESSONS

On Wednesday, the IEA released its latest paper, 'Lockdown Lessons in Health Economics: The case of Alcohol', authored by Head of Lifestyle Economics Christopher Snowdon. The paper dispels popular public health wisdom that by limiting the availability, affordability and advertisement of alcohol products, a fall in per capita consumption will also lead to a decline in alcohol-related harm and deaths.

[link removed]

The Covid-19 lockdowns in the UK provided a ‘natural experiment’ in which the impact of dramatic changes in the availability and marketing of alcohol can be examined. During lockdown, the number of alcohol outlets fell and expenditure on alcohol advertising fell by approximately half. Alcohol became slightly less affordable due to a fall in incomes. The paper highlights that despite these conditions, the UK saw a 18.7 per cent increase in the number of alcohol-specific deaths in 2020, contrary to what public health tsars would expect to see.

This suggests that nanny state policies, which aim to curb overall consumption of alcohol, such as raising prices and ad bans, fail to prevent alcohol-related harm. Christopher argues that a public health policy rethink is therefore needed to target support to heavy drinkers and free other drinkers from burdensome costs. Read the full report here ([link removed]) .

[link removed]

Christopher appeared on TalkTV ([link removed]) to discuss the paper and presented the main points of his research in an explainer video here ([link removed]) . The paper was also widely reported across the regional press ([link removed]) .

[link removed]

On the same day as we released Christopher's report, the World Health Organisation (WHO) recommended higher taxes on alcohol and the wider introduction of minimum unit pricing (MUP).

Christopher Snowdon responded in an article for The Telegraph ([link removed]) , citing his report and the Scottish government's failed MUP policy ([link removed]) , which has not reduced alcohol consumption among heavy drinkers, and cost the Scottish consumer £270 million.

[link removed]

He said: "harmful drinking is not driven by commercial factors or by a lack of regulation, but by personal circumstances, hardship and stress. Tackling harmful drinking requires focusing on harmful drinkers rather than on the whole population."

Christopher was quoted on the WHO's calls for MUP in the Daily Mail ([link removed]) , and The Telegraph ([link removed]) , as well as across the regional press.
INFLATION SOARS

Inflation hit a new 40-year high of 9.1 per cent in May, according to the ONS. Inflation has also pushed up interest payments on government debt to their highest level for May on record. A large proportion of the nation’s £2 trillion debt is linked to the retail price index measure of inflation.

[link removed]

IEA Economics Fellow Julian Jessop argued that the inflation spike should spur the Bank of England to respond with a more robust rate increase. Julian said:

"The current level of official interest rates – just 1.25 per cent – is still far too low. A continued drip, drip of small increases from here is unlikely to change anything. A half-point move would at least send a clearer signal that the Bank is serious about getting inflation back down again." Read the full press release here ([link removed]) .

[link removed]

On the national debt, Julian noted that despite the gloomy figures, higher debt interest costs should not prevent tax cuts, particularly because much of the debt only needs to be paid once inflation linked bonds mature.

He said: "The fact that these higher debt interest payments will be spread over many years also undermines the argument that the government cannot afford to cut taxes now." Read his full comment here ([link removed]) .
INSPIRING FREEDOM AWARD

Yesterday, we were delighted to announce (http:// [link removed]) the recipient of our first Inspiring Freedom Award, to coincide with the IEA’s annual THINK conference ([link removed]) .

The award, launched this year, recognises an individual philanthropist or company who has made an outstanding contribution to the Institute’s student education programme in the previous calendar year in terms of time, talent and resources.

The 2022 IEA Inspiring Freedom Award goes to American businessman and renowned philanthropist Vernon W. Hill II, who was the founder and first Chairman of UK-based Metro Bank.

IEA Director General Mark Littlewood, congratulated Vernon on his award saying:

"Vernon was a regular feature of our 2021 summer education programme speaking to over 1,000 students from over 40 different countries across the period. Behind the scenes he is also an excellent sounding board for ideas, keeping the students needs first and foremost in our plans. We were all united in our decision as to who should receive the inaugural award".

You can watch Vernon’s reaction to receiving the award on our YouTube channel here ([link removed]) , and read our blog post here ([link removed]) , by IEA Chief Operating Officer Andy Mayer to find out why recognising outstanding philanthropy matters more than ever.

iN THE MEDIA

[link removed]

Raise the roof... There were reports this week that the government is considering abolishing the EU-imposed cap on bankers' bonuses.

Writing for The ([link removed]) Telegraph ([link removed]) , IEA Head of Public Policy Matthew Lesh supported the move. He said:

"Leaving the EU will only be a worthwhile endeavour if we seize opportunities. The rules about bankers’ bonuses have had a disproportionate impact on the UK as a financial services hub. They were opposed by the UK government at the time."

[link removed]

Good service... Matthew also wrote for Spiked Online ([link removed]) on claims that social media are pushing users to the political far right, and how such 'misguided' theories have informed the upcoming Online Safety Bill.

Matthew posited: "The result of all the duties in the Online Safety Bill will be to undermine freedom of expression, by encouraging platforms to show users less controversial content and empowering the easily offended to demand content be removed. And all of this is based on an unproven premise that social media are responsible for many of society’s ills."

[link removed]

Plunder and pillage... Commenting in The Telegraph ([link removed]) , IEA Head of Regulatory Affairs Victoria Hewson, considered the EU's apparent 'plot to punish the City of London'.

Victoria asserted: “The financial services industry really benefits from being able to access the City, especially its clearing markets. It’s a global leader and even if you make it more difficult to access, that is just as likely to drive business to New York and major hubs in Asia. So the move won’t even serve the EU’s own protectionist goals.”

[link removed]

Lock it out... The government has restored the pension triple lock, which will see the state pension rise by 10 per cent in line with inflation. IEA Editorial and Research Fellow Len Shackleton argued in favour of scrapping the triple lock and targeting public money at those most likely to be impacted by high inflation.

Len said: "It may be difficult politically to renege on the triple lock again, but we should bear in mind that pensioners as a group are less likely to be in poverty than, say, families with young children. Support for struggling households could be better targeted."

Len's comment was reported across the media, including in Bloomberg ([link removed]) , Guardian ([link removed]) , Daily Express and The Independent.

[link removed]

Less dithering, more drilling... IEA Energy Analyst Andy Mayer appeared on BBC Radio 2 to discuss the rail strikes and soaring energy prices.

Andy argued that the cost of living crisis is largely an energy crisis and told listeners "the only way to deal with inflation in energy is to keep costs down", which means we must increase the supply of oil and gas. Listen here ([link removed]) (from 10mins).

[link removed]

Oil and gas industry unite!...In an article for CapX ([link removed]) , Andy compared the Union's strategy of bending the government to their members' needs with that of the oil and gas industry. He wrote:

"Were a group like the RMT representing the North Sea then we might reasonably expect to see the taps being turned off and the rigs shut down. We would see industry leaders reminding us that we need these resources, and their workers are energy heroes keeping the lights on, not climate criminals."

Wrong side of the tracks... Matthew appeared on GB News ([link removed]) to discuss ongoing rail strikes. He said:

"I'm not against the idea of unions striking, I think they should be free to withdraw their labour. At the same time, people shouldn't be free of consequence if people withdraw their labour. Companies should be free to sack staff who withdraw their labour."

[link removed]

Caffeine crusade... The Welsh Government is currently consulting on whether to outlaw the sale of energy drinks to children under 16. Quoted in The Sun ([link removed]) , IEA Head of Lifestyle Economics Christopher Snowdon said:

"Since a can of Red Bull has no more caffeine than a cup of instant coffee, it is for politicians to explain why one is too dangerous for fifteen year olds but the other is fine. I’d like to see them try."
[link removed]

As an educational charity, the work we do is entirely funded by donations. If you are able to help, please click here ([link removed]) or get in touch with our Development Director Angela Harbutt at [email protected] (mailto:[email protected]?body=Dear%20Angela%2C) . We thank you for your continued support.
And why not get Amazon to donate too?
All you have to do is to start shopping on [link removed] ([link removed]) and pick the Institute of Economic Affairs Limited as your chosen charity. The IEA will then receive 0.5% of your spending on most items. Everything else remains the same (and at no additional cost to you).
IN CASE YOU MISSED IT

[link removed]

State overreach?... On Monday IEA head of Regulatory Affairs Victoria Hewson spoke at the Tech UK's Tech Policy Leadership Conference ([link removed]) on the topic of Delivering the UK’s pro-competition regime for digital markets. This was a discussion with Shane Murphy, Meta's Privacy Policy Manager and David Parker, Director of the Competition Practice at Frontier Economics about the establishment of the Digital Markets Unit of the Competition and Markets Authority (CMA).

She also discussed Meta's appeal to overturn the CMA order that it sell Giphy in a panel discussion on the IEA's YouTube Channel ([link removed]) . While the CMA's order that Meta's acquisition of Giphy damaged competition has been retained, it has raised a debate over how much power should be afforded to the regulator.

Victoria was joined by experts Aurelien Portuese, Director of the Schumpeter Project at the Information Technology and Innovation Foundation, Iain Murray, Vice President of the Competitive Enterprise Institute and Cento Veljanovski, Managing Director at Case Associates and IEA Academic Fellow.

[link removed]

The Swift Half... In this week's of The Swift Half with Snowdon, Christopher Snowdon, IEA Head of Lifestyle Economics, speaks to Mark Schrad, Professor at the Department of Political Science at Villanova University, to discuss temperance movements and the history of prohibitionism.

Mark's latest book, 'Smashing the Liquor Machine: A Global History of Prohibition', can be bought here ([link removed]) .
IEA BOOK CLUB EVENTS

How the Woke Won... On Monday 4 July, IEA Head of Cultural Affairs Marc Glendening will chair an event with Joanna Williams on her latest book, How the Woke Won: The Elitist Movement That Threatens Democracy, Tolerance, and Reason. Joanna provides a powerful critique of the intellectual roots of wokeness and how this movement, which poses as radical and left-wing, came to be embraced by some of the most privileged people imaginable.

All these events are exclusively for IEA Book Club members. For more information on the Book Club please get in touch at [email protected] (mailto:[email protected]) or click the link here.

Restoring Confidence in the Market... At 12pm on Wednesday 6 July, the IEA and The Centre for Enterprise, Markets and Ethics ([link removed]) are hosting a joint event to discuss the topical question of whether the UK public has lost faith in free markets, and if so, what might be done about it.

CEME’s Director, Revd Dr Richard Turnbull, will present startling polling undertaken by CEME. Sir Bernard Silverman FRS, statistician and former President of the Royal Statistical Society and Chief Scientific Adviser to the Home Office, and Victoria Hewson, IEA Head of Regulatory Affairs, will contribute their thoughts on whether businesses themselves have caused the loss of confidence in the market or if other factors are at play. Panellist comments will be followed by Q&A with the audience. The event will be chaired by Lord Griffiths of Fforestfach.

A light lunch will be served at 12pm, with the discussion set to commence at 12:45pm and conclude at 2.30pm. If you would like to attend this free event, please apply to [email protected] (mailto:[email protected]) to reserve a seat. Places will be allocated on a first come first served basis.

CALLING ALL STUDENTS!

[link removed]

We are excited to launch the Economic Thought Leaders’ Symposium at the University of Buckingham from 7-9 September 2022.

The theme for this year’s programme is The Economics of War and Peace. We will discuss topics like trade not war, international institutions, diplomacy and game theory. To apply, please send a CV and cover letter explaining why you’d like to attend, as well as 500 words on promoting the reconstruction of an economy after a war to [email protected] (mailto:[email protected]) by 17 June 2022. You can find out more here ([link removed]) .

[link removed]

We have launched the 2022 Dorian Fisher Essay Competition. Named after the beloved wife of our founder Sir Antony Fisher, this is our biggest essay competition of the year, exclusively for A-Level and IB students.

First prize will receive £500, with a separate prize of £500 for the school with the highest number of entrants. The deadline for this year’s competition is Friday 29 July 2022. You can find out more here ([link removed]) .

============================================================
** Twitter ([link removed])
** Facebook ([link removed])
** LinkedIn ([link removed])

You are receiving this email from the Institute of Economic Affairs
** Unsubscribe ([link removed])
from this list.

© 2022 Institute of Economic Affairs
Institute of Economic Affairs 2 Lord North Street London, London SW1P 3LB United Kingdom

Registered in England 755502, Charity No. CC/235 351, Limited by Guarantee

** Forward ([link removed])
this email to a friend

This email was sent to [email protected] (mailto:[email protected])
why did I get this? ([link removed]) unsubscribe from this list ([link removed]) update subscription preferences ([link removed])
Institute of Economic Affairs . 2 Lord North Street . London, London SW1P 3LB . United Kingdom