Is America Really Richer Than Europe? | IEA Podcast

In this Institute of Economic Affairs podcast, IEA Director General Lord Hannan is joined by Editorial Director Dr Kristian Niemietz and Head of Lifestyle Economics Christopher Snowdon. The conversation covers whether America is genuinely richer than Europe, the Government’s proposed changes to public procurement rules, and a recent case of academic misconduct at Cambridge.On the first topic, Kristian and Chris argue that America’s GDP advantage over Europe is real and widening, and push back on attempts to explain it away through hours worked, lifestyle preferences, or selective social comparisons. They point to lower energy costs, more liberal labour market institutions, and a stronger post-2008 recovery as key drivers of the gap. The discussion then turns to the Government’s “social value” procurement rules, which require companies bidding for public contracts to meet a wide range of non-economic criteria. Chris sets out how these requirements have expanded since 2012 and argues they function as a hidden tax that adds cost without adding value. The conversation closes with a discussion of a recent academic misconduct case, and what it reveals about institutional incentives and groupthink within universities.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit economicaffairs.co.uk/subscribe