Press Release: Ed Miliband's attack on Lord Freud is shameful

Commenting on Ed Miliband's attack on Lord Freud's comments about the disabled, Research Director of the Adam Smith Institute, Sam Bowman, said:

Lord Freud has been shamefully mistreated by Ed Miliband. His point was that the market value of some people’s wages is below the minimum wage. This is often true of the severely disabled and can have appalling consequences for their self-esteem and quality of life. Fixing this problem was the justification for Remploy, a government-funded firm that gave jobs to disabled people who could not find work elsewhere.

To point out that someone’s market value is less than minimum wage has nothing to do with their moral value as human beings. Freud’s point was that we should help people in this situation by allowing them to find jobs paying below the minimum wage and topping up their pay directly to make up the difference.

Even if you don’t agree with this method, it is motivated by compassion for the disabled and an understanding of the unpleasant side-effects of our minimum wage laws. Freud’s only crime was to speak bluntly: it is disgraceful to use his words against him in the way Miliband has.

Notes to editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at kate@adamsmith.org / 07476 915072.

The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Sam Bowman’s comments on the fall of inflation to 1.2% feature in The Daily Telegraph

Research Director Sam Bowman’s comments on why the fall of inflation to 1.2% is good news were featured in The Daily Telegraph.

"It is usually concerning when the Bank misses its inflation target, but the latest figures look like the exception," said Sam Bowman, research director of the Adam Smith Institute, a think tank.

"Inflation fell because goods such as fuel and food became cheaper globally, in real terms.

"At home, consumer demand seems healthy, so the usual dangers of low inflation do not apply."

Ben Southwood's comments on the new pension reforms feature in The Herald

The Adam Smith Institute's Head of Policy, Ben Southwood, was quoted in The Herald, explaining the benefits of the new pension reforms that will come into effect next year.

The reforms come into force next spring and some pension experts fear a "retirement income car crash" as pensioners rush to spend their cash. But Ben Southwood, head of policy at the Adam Smith Institute, said: "Why would people have saved up over such a long time only to blow it all? If we trust people to spend their salary we should trust them to spend their savings."

Read the full article here.

Sam Bowman's comments on the fall of inflation to 1.2% feature in The Mail Online

Research Director Sam Bowman's comments on why the fall of inflation to 1.2% is good news were featured in The Mail Online.

The CPI figures are also good news for pensioners. In line with the the figures, state pensions will rise by 2.5 per cent or £2.85 a week next spring as the Government's 'triple lock' ensures an increase of whichever is the greater out of average earnings, September's inflation rate or 2.5 per cent.

Research Director of think-tank, the Adam Smith Institute, Sam Bowman, said: 'It’s usually a bad thing when the Bank of England misses its inflation target but today’s figures look like the exception.

'The fall appears to be due to supply side factors like cheaper fuel and food. On the demand side, inflation seems healthier and closer to being on target, and this is what counts from the macroeconomic point of view. All in all, good news and not something that should cause any panic.

'What this does highlight is the absurdity of the government’s pensions triple lock. Pensions are now rising by 2.5 per cent, more than double the 1.2 per cent inflation rate.

'This would be unsustainable and unnecessary at the best of times, but at a time when tax revenues are worryingly weak this is totally profligate and unsustainable.'

Read the full article here.

Kate Andrews argues in favour of Osborne's pension reforms on Sky News

Communications Manager of the Adam Smith Institute, Kate Andrews, argues in favour of pension reforms that give earners easier, more flexible access to their savings on Sky News.

Sam Bowman explains the reasons behind high CEO pay on BBC World Service

Research Director of the Adam Smith Institute, Sam Bowman, explains why high pay for CEO is beneficial for a company and all its employees on BBC World Service. Listen here:

Press Release: For once, missing the inflation target is a good thing

Commenting on today's fall in inflation to 1.2%, Sam Bowman said:

It’s usually a bad thing when the Bank of England misses its inflation target but today’s figures look like the exception. The fall appears to be due to supply side factors like cheaper fuel and food. On the demand side, inflation seems healthier and closer to being on target, and this is what counts from the macroeconomic point of view. All in all, good news and not something that should cause any panic.

What this does highlight is the absurdity of the government’s pensions triple lock. Pensions are now rising by 2.5%, more than double the 1.2% inflation rate. This would be unsustainable and unnecessary at the best of times, but at a time when tax revenues are worryingly weak this is totally profligate and unsustainable.

Old people have been spared most of the pain of austerity, perhaps for the obvious reason that the grey vote is so powerful, but throwing money at them like this is going totally overboard. As Britain’s population gets older, the demands of the triple lock will become increasingly difficult to meet, and it should be abandoned to help restore stability to Britain’s public finances.

Notes to editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at kate@adamsmith.org / 07584 778207.

The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Press Release: Letting people spend their pensions how they want is a good idea

Commenting on the pension reforms being set out today, Head of Policy at the Adam Smith Institute, Ben Southwood, said:

Letting people decide what to do with their own money is almost always a good idea, and this reform is no exception.

It's only a small move, but giving people more flexibility over how they spend the money they've saved through their life is positive—a step forward when so many pension reforms over past decades have been steps backward.

The system is a complicated mess, and anything we can do to make it clearer to people how they will be able to use their savings when they retire is a good move.

Why would people have saved up over such a long time only to blow it all? If we trust people to spend their salary we should trust them to spend their savings.

Notes to editors:

For further comments or to arrange an interview, contact Kate Andrews, Communications Manager, at kate@adamsmith.org / 07584 778207.

The Adam Smith Institute is an independent libertarian think tank based in London. It advocates classically liberal public policies to create a richer, freer world.

Sam Bowman discusses the economic benefits of TTIP on BBC 3 Counties radio

Research Director of the Adam Smith Institute, Sam Bowman, spoke to BBC 3 Counties breakfast programme on Saturday morning about the economic benefits that TTIP would have for the UK and the rest of the world. He also explained the importance all entities, including corporations, holding the government accountable to the law. Listen to the interview here. (Starts at 02:20:05)

Sam Bowman's criticisms of The Mayor of London's pledge to cut EU immigration are featured in CityAM

Research Director of the Adam Smith Institute, Sam Bowman, was featured in CityAM, criticizing the Mayor of London's plan to cut EU immigration to the UK:

And the Adam Smith Institute’s Sam Bowman called Boris’ plan “barking mad.”

“However the UK’s relationship with the EU ends up, it is vital that we preserve the freedom for people to work where they can find the best deal,” Bowman said.

Read the full article here.