Economics lecture: Paternalism and Market Failure – a free market critique
On Friday 7 November, our Sixth Form economists attended a lecture by Dr Christopher Snowden, libertarian writer, researcher and Head of Lifestyle Economics at the Institute of Economic Affairs (IEA). Entitled Paternalism and Market Failure – a free market critique, the lecture drew on Dr Snowden’s research into social freedoms, prohibition and evidence-based policy.
Christopher explored the UK’s public spending and income over the last five years, showing the concerning rise in public spending leading us to a cycle of ever-increasing debt as the money raised through taxes (the main sources being income, NI, VAT, corporation and council) was insufficient. He explained that whilst spending on justice and local government had declined, the level of expenditure was most significant in four areas: the cost of borrowing, education, the NHS and social security.
He put forward his thesis to explain why spending on these areas had increased, even during David Cameron’s ‘age of austerity’ and that the most easily reversible increases are in welfare payments which have escalated as a consequence of efforts to reduce them. He also discussed how a free market could drive up the quality of medical care and state-run education, as well as warning that increasing the minimum wage will increase the risk of mechanisation and consequently, unemployment.
Overall, this was a fascinating reflection on the contributing factors to the UK’s expenditure and the effect of government policies in trying to manage it. Alex (HS5) concluded, “I found Dr Snowdon’s talk thought provoking and well argued. It was a great way to broaden my understanding past the syllabus.”
