Has the Government Killed the Jobs Market? | Economy Explained

In this first episode of Economy Explained, a new series from the Institute of Economic Affairs, the series examines pressing economic issues through evidence-based analysis. Economy Explained aims to provide clear, objective insights into how economic policy affects everyday life, exploring how market-oriented principles can address current challenges facing national economies. This episode, hosted by Callum Price, Director of Communications, focuses on the UK labour market and the Labour government’s Employment Rights Bill. Price analyses three key policy changes affecting job creation: the rise in minimum wage (including a 16% increase for 18-20 year olds), the hike in employer National Insurance contributions from 13.8% to 15%, and new employment obligations through the Employment Rights Bill. He examines how these measures are increasing the cost of hiring, explores the government’s productivity arguments, and questions whether laws designed to protect workers might inadvertently reduce job opportunities. The video concludes by making the case for a more flexible labour market that balances worker protections with the ability of businesses to create employment opportunities. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, Daniel Freeman interviews Professor Bas van Bavel, a distinguished professor at the University of Utrecht and author of “The Invisible Hand: How Market Economies Have Emerged and Declined Since 500 A.D.” The conversation examines how market economies emerged in medieval Europe, why some regions developed competitive markets for land, labour and capital while others did not, and what caused Europe to pull ahead of the Middle East economically during this period. Professor van Bavel explains the crucial distinction between output markets and input markets, arguing that true market economies only emerge when there are functioning markets for the factors of production. The discussion traces how northern Italy first developed input markets in the 10th and 11th centuries as ordinary people organised themselves to break aristocratic power, followed by similar developments in the Low Countries. They explore why urbanisation alone wasn’t decisive for market development, how security of property rights encouraged investment in expensive capital goods like mills, and the role of associational organisations in medieval European economic growth. The conversation also covers why the Islamic world, despite having advanced markets in early medieval Iraq, failed to maintain this advantage. The interview concludes with Professor van Bavel’s analysis of how market economies tend to decline through a self-reinforcing process of wealth accumulation. He argues that wealthy elites use economic leverage to dominate markets, control states through financial means, and eventually reshape market rules to serve their interests. This pattern, he suggests, can be observed across multiple historical market economies from medieval Italy and the Low Countries to modern America. They debate whether this process is inevitable, how Britain’s relatively oligarchical 18th century led to the Industrial Revolution, and whether contemporary sclerosis in growth stems from elite capture or other factors like housing constraints. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, Head of Media Reem Ibrahim is joined by IEA Executive Director Tom Clougherty and Editorial Director Kristian Niemietz to discuss the aftermath of Conservative Party Conference. The conversation examines Kemi Badenoch’s headline announcement to abolish stamp duty land tax on primary residences, alongside the party’s proposed £47 billion in spending cuts through their new “golden rule.” They analyse why stamp duty is Britain’s most distortionary tax, costing 75p in economic damage for every pound raised, and how abolishing it could unlock a frozen property market where people now move house half as often as they did a generation ago.The discussion turns to the Conservative Party’s commitment to maintaining the triple lock on pensions, despite it consuming over 10% of total public spending - more than education, policing and defence combined. Tom explains how the triple lock ensures state pensions will rise faster than earnings while the population ages, creating an unsustainable fiscal trajectory that could add £200 billion in today’s money to public spending by 2070. The panel explores the political tension between young Conservative activists pushing for planning liberalisation and an ageing voter base now averaging seventy years old, and whether the party can escape this electoral trap.The conversation concludes with an examination of the Green Party conference vote to effectively abolish the private rental market through rent controls, mandatory tenant buyback schemes, and council takeovers of unsold properties. Kristian and Reem critique these proposals as ignoring basic market signals and supply constraints, arguing that similar thinking influences parts of the Labour Party. The panel makes the case that whether discussing Conservative stamp duty abolition or Green Party rental policies, the fundamental solution to Britain’s housing crisis remains the same: radical planning liberalisation to massively increase housing supply. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs event, IEA Executive Director Tom Clougherty interviews George Selgin about his new book “False Dawn: The New Deal and the Promise of Recovery, 1933-1947.” Selgin is a Senior Fellow and Former Director of the Centre for Monetary and Financial Alternatives at the Cato Institute and Professor Emeritus of Economics at the University of Georgia. The conversation examines how the US finally recovered from the Great Depression and what exact contribution the New Deal made to that recovery.Selgin challenges conventional wisdom about the New Deal, arguing it was neither a Keynesian fiscal stimulus programme nor an exercise in monetary expansion. He explains how Roosevelt’s policies—including the National Recovery Administration’s price controls and the Agricultural Adjustment Act’s crop destruction—actually hindered recovery by artificially raising prices without increasing demand. The discussion covers the banking crisis of 1933, the role of gold flows in driving what limited recovery occurred, and the devastating 1937-38 recession caused by Federal Reserve and Treasury anti-inflation policies. Selgin also examines why the Depression finally ended, arguing it wasn’t World War II spending itself but rather the restoration of business confidence during the war that enabled the postwar investment boom.The conversation includes discussion of Herbert Hoover’s actual policies, the distinction between relief and recovery, FDR’s opposition to monetary expansion and deposit insurance, and what Keynes himself thought about Roosevelt’s approach. Selgin concludes by explaining why free banking systems respond more appropriately to economic crises than centrally managed monetary systems.Timestamps:00:00 - Introduction02:26 - Why This Book on the New Deal?06:14 - How Severe Was the Great Depression?08:48 - Banking Crisis and Money Supply Collapse15:13 - FDR’s Inauguration and Bank Holiday25:09 - Gold Standard and FDR’s Monetary Policy31:12 - Not Keynesian Fiscal Stimulus34:32 - Hitler’s Gold Drove Recovery42:28 - The Real New Deal: Price Controls48:37 - Agriculture Policy: Paying Farmers Not to Produce58:11 - What Really Ended the Depression01:02:19 - Business Confidence, Not War Spending01:05:23 - Keynes Was Right About Roosevelt This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, Head of Media and Communications Reem Ibrahim is joined by Executive Director Tom Clougherty and Editorial Director Kristian Niemietz to discuss the aftermath of the Labour Party conference. The conversation examines Rachel Reeves’s speech as Chancellor, analysing her dual messaging that attempts to position Labour both as a left-wing alternative to the Conservatives and as the pro-business, fiscally responsible party against Reform. They discuss the notable absence of tax policy details ahead of the autumn budget, the focus on initiatives like school breakfast clubs rather than substantive economic strategy, and concerns that the government prioritises state spending over genuine growth-promoting reforms.The discussion turns to Labour’s approach to economic inactivity and youth unemployment, particularly Rachel Reeves’s job guarantee scheme. The panel critiques this workfare-style program as misdiagnosing the problem, noting that the real issue lies in the massive increase in disability and incapacity benefit claims rather than conventional unemployment. They examine how government policies like increased employer National Insurance contributions, higher minimum wages, and employment rights reforms are making it more expensive and riskier to hire young people, while the job guarantee scheme fails to address these fundamental barriers to employment.The podcast concludes with analysis of recent climate and health policy announcements. Ed Miliband’s pledge to ban fracking is discussed as largely symbolic given existing regulatory barriers, while the panel examines how high energy costs resulting from climate policies are hampering UK economic competitiveness. They also critique the government’s implementation of restrictions on buy-one-get-one-free deals for foods high in fat, salt and sugar, arguing this “bogof ban” will add hundreds of pounds to family food bills during a cost of living crisis without meaningful evidence of reducing obesity. The conversation highlights how regulatory overreach across multiple policy areas reflects a broader pattern of state expansion that prioritises activist agendas over economic growth and consumer freedom. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this new Land of Opportunity series, the Institute of Economic Affairs has partnered with Land of Opportunity to explore why America’s economy has dramatically outpaced Europe since 2008. The series examines the cultural, policy, and philosophical differences that have allowed the US to surge 50% ahead in GDP while Europe has stagnated. Through interviews with leading American policy thinkers, entrepreneurs, and analysts, the series investigates what Britain can learn from the American model to rebuild its own culture of enterprise and aspiration. In this first episode, Andrew Barclay from Land of Opportunity speaks with Dr. David Rehr, Director of the Centre for Civil Business Engagement at George Mason University. The conversation examines how America’s entrepreneurial culture, rooted in its founding principles of freedom and self-reliance, continues to drive economic success through lower taxes, reduced regulation, and a philosophical approach that trusts individuals over government to allocate capital effectively. Rehr explains the fundamental differences between the American and European economic models, and why Britain—despite having world-class universities, English as the business language, and an independent judiciary—has adopted policies that punish rather than reward growth. The discussion reveals how regulation functions as a hidden tax that disproportionately benefits large corporations while crushing small businesses and entrepreneurs. Rehr and Barclay explore why British high streets now look identical, dominated by a few major chains that can afford compliance costs, and contrast this with America’s approach where states compete to offer business-friendly environments. They discuss how Britain’s VAT threshold prevents 30,000 businesses annually from expanding, why fear of failure rates are 20% higher in the UK than comparable countries, and the cultural shift needed to treat every individual as the “CEO of their own life” regardless of their role in society. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs discussion, Chair Syed Kamall hosts a panel examining Britain’s welfare crisis with Dr Stephen Davies (Senior Education Fellow, IEA), Edward Davies (Research Director, Centre for Social Justice), Danny Kruger MP (then Shadow Minister for Work & Pensions), Fraser Nelson (Times Columnist & former Spectator Editor), and Andy Cox (Co-Director, SIGNAL). The conversation explores how the current welfare system creates dependency rather than addressing social marginalisation, with 6.25 million people on out-of-work benefits compared to just 1.67 million claiming unemployment - a scale that would have been considered catastrophic in previous decades. The panel discusses the urgent need for radical reform, moving away from the managerial state approach toward more relational, community-based solutions that restore personal agency. Key themes include the breakdown of family structures (with only 50% of children now living with both parents by GCSE age), the over-medicalisation of low-level mental health conditions, and how current policies inadvertently subsidise worklessness while penalising family formation. They examine successful models from civil society organisations that prioritise trusted relationships over bureaucratic compliance. The discussion concludes with warnings about an impending debt crisis that could force punitive reforms if proactive change isn’t implemented. The panellists argue for devolving responsibility from central government to local communities, reforming the tax system to support marriage and stable families, and fundamentally rethinking the role of civil society in welfare provision. They emphasise that without addressing the moral and values crisis underlying welfare dependency, policy tinkering will remain insufficient to tackle Britain’s most entrenched social problems. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs discussion, Chair Syed Kamall hosts a panel examining Britain's welfare crisis with Dr Stephen Davies (Senior Education Fellow, IEA), Edward Davies (Research Director, Centre for Social Justice), Danny Kruger MP (then Shadow Minister for Work & Pensions), Fraser Nelson (Times Columnist & former Spectator Editor), and Andy Cox (Co-Director, SIGNAL). The conversation explores how the current welfare system creates dependency rather than addressing social marginalisation, with 6.25 million people on out-of-work benefits compared to just 1.67 million claiming unemployment - a scale that would have been considered catastrophic in previous decades.The panel discusses the urgent need for radical reform, moving away from the managerial state approach toward more relational, community-based solutions that restore personal agency. Key themes include the breakdown of family structures (with only 50% of children now living with both parents by GCSE age), the over-medicalisation of low-level mental health conditions, and how current policies inadvertently subsidise worklessness while penalising family formation. They examine successful models from civil society organisations that prioritise trusted relationships over bureaucratic compliance.The discussion concludes with warnings about an impending debt crisis that could force punitive reforms if proactive change isn't implemented. The panellists argue for devolving responsibility from central government to local communities, reforming the tax system to support marriage and stable families, and fundamentally rethinking the role of civil society in welfare provision. They emphasise that without addressing the moral and values crisis underlying welfare dependency, policy tinkering will remain insufficient to tackle Britain's most entrenched social problems. Get full access to Institute of Economic Affairs | Insider at insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, Communications Director Callum Price is joined by Executive Director Tom Clougherty and Managing Editor Daniel Freeman. The conversation covers Andy Burnham’s vision for “Burnhamism” - his self-described “business friendly socialism” outlined in a lengthy New Statesman interview. They examine his proposals for mass renationalisation of buses, railways, energy and water companies, along with ambitious social housing programs funded through wealth taxes. The discussion also explores the Resolution Foundation’s latest tax proposals, including their suggestion to shift from National Insurance to income tax while raising overall revenue by £35 billion.The hosts critically analyse Burnham’s economic agenda, questioning how his spending commitments could realistically be funded without broad-based tax increases on ordinary workers rather than just “taxing the rich.” Tom Clougherty highlights the mathematical impossibility of funding such ambitious programs through wealth taxes alone, noting that public spending has more than doubled in real terms since 1997. They discuss the growing chorus of voices, including the Institute of Directors and Resolution Foundation, now openly calling for income tax rises as fiscal reality sets in.The episode concludes with an examination of the government’s proposed digital ID cards, branded as “Brit cards,” which Prime Minister Keir Starmer is positioning as a solution to illegal immigration. While acknowledging potential convenience benefits of streamlining government interactions, both Tom and Daniel express scepticism about whether mandatory ID cards will meaningfully reduce illegal working, given that other European countries with similar systems still struggle with larger black economies than Britain. They warn of the slippery slope toward an intrusive nanny state while debating whether voluntary adoption might be preferable to compulsory implementation. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, IEA Director of Communications Callum Price interviews Andrew Barclay, entrepreneur and founder of Land of Opportunity, a campaign group exploring economic lessons from America. The conversation examines why the US economy has dramatically outpaced the EU since 2008, with America's GDP skyrocketing ahead while Europe stagnated. Barclay discusses his team's research trip to America to understand what drives their economic success and how Britain can learn from their pro-enterprise culture and policies. The discussion reveals how America's bipartisan celebration of the "American Dream" creates a culture where aspiration and wealth creation are rewarded across political lines. Barclay explains how the US tax system is structured to favour long-term wealth creation, with features like tax deferrals for property developers who reinvest profits and capital gains incentives for start-up investments. He contrasts this with Britain's complex tax code filled with cliff edges and disincentives, such as the VAT threshold that actually encourages businesses to stay small, and argues that America instinctively views regulation as increasing costs on business rather than helping it. Looking at solutions for Britain, Barclay advocates for reducing the size of government and welfare spending while returning money to entrepreneurs and wealth creators through tax reform. He emphasises that Britain still has the talent and innovation - describing the American Dream as "a British seed planted in American soil" - but has lost its way through decades of politics that penalised enterprise. The conversation concludes with his call for a bipartisan "British Dream" that celebrates aspiration and entrepreneurship, arguing that with the right cultural shift and policy changes, Britain can reclaim its position as a true land of opportunity. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe