The Real Reason Britain Is Poorer Now Than America's Poorest State | Douglas Carswell | IEA Interview

In this Institute of Economic Affairs podcast, IEA Communications Manager Reem Ibrahim interviews Douglas Carswell, President and CEO of the Mississippi Centre for Public Policy, former MP, and co-founder of Vote Leave. The conversation examines Mississippi's remarkable economic transformation, where the state has achieved per capita GDP that now exceeds the UK, with both Germany in its sights. Carswell explains how Mississippi accomplished this through three key reforms: implementing a flat rate income tax that will be completely abolished by 2037, radical labour market deregulation including the elimination of most occupational licensing restrictions, and maintaining cheap energy by avoiding green policies that have negatively impacted other regions.The discussion moves to Carswell's educational expertise, particularly Mississippi's educational improvements through phonics-based reading instruction and mandatory grade retention for underperforming students. He highlights the school choice revolution sweeping America, with 15-16 states now offering universal school choice options, allowing parents to direct their per-pupil funding to any school of their choice. Carswell argues that this market-based approach to education could significantly improve standards and give parents genuine control over their children's education, drawing parallels to Milton Friedman's voucher system proposals.The interview concludes with Carswell outlining his comprehensive plan for Britain's economic revival, detailed in his recent work "Milestones: Nine Steps to Restore Britain." He diagnoses the UK's problems as stemming from 28 years of "Blairite" governance characterised by technocratic overreach, monetary stimulus as a substitute for genuine economic reform, and the belief that human nature is interchangeable. His proposed solutions include dramatic cuts to public spending by reducing welfare dependency, fundamental tax reforms including moves toward flat taxation, abolition of restrictive legislation like the Equality Act and Human Rights Act, and comprehensive planning reform to address the housing crisis. Carswell emphasises that Britain's problems are not merely economic but represent a deeper moral and cultural crisis requiring politicians to address forgotten communities who feel their country has been taken from them.The Institute of Economic Affairs is an 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. 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