Is Britain Actually Neoliberal? The Spectator's Michael Simmons | IEA Interview

In this Institute of Economic Affairs podcast, IEA Director General Lord Hannan interviews Michael Simmons, economics editor of The Spectator, about whether Britain has really been a neoliberal economy for the past forty years, or whether that claim gets the diagnosis badly wrong. The conversation covers the rise of regulation and price controls since the financial crisis, the perception gap between how wealthy people think Britain is and the fiscal reality, and why voters consistently overestimate profit margins at supermarkets and the NHS.Michael argues that living standards stalled not because of neoliberalism but because Britain stopped being a free market economy, drifting into a more heavily controlled and interventionist system well before the pandemic accelerated the trend. The pair discuss what a serious fiscal crisis might look like for the UK, comparing the sharp but effective austerity in Ireland with the drawn out and less successful approach in Greece, and consider whether Britain would follow the Irish or the Greek path if the bond markets turned. They also examine the political incentives that make honest arguments for smaller government difficult to sustain in office.The discussion closes with a wider look at the “socialism has never been tried” argument, comparing outcomes in North and South Korea and in East and West Germany, and asking why economic evidence so rarely changes public opinion.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