Adam Smith Institute

Privatization - Reviving the Momentum calls for a new wave of privatizations, which could net the exchequer in excess of £20bn. Given the worsening state of the economy and the increasing tightness of the public finances, the report notes that such an inflow of funds would be very welcome.  In addition to the revenues generated for the government, a new wave of privatizations would also deliver significant operational benefits. Previous privatizations have delivered a wide range of improvements, including increased investment, lower prices, greater choice and better service for customers – as well as underpinning billions of pounds worth of economic activity. The leading privatization candidates identified by the report include the Royal Mail, Channel 4, BBC Worldwide, Scottish Water, Northern Ireland Water, Glas Cymru, the National Air Traffic Control System, as well as government stakes in British Energy and the Nuclear industry.

Download PDF file

Unfair Trade argues that for all its good intentions, Fairtrade is not fair. Firstly, by guaranteeing certified farmers a minimum price for their goods, it can distort local markets leaving other farmers even worse off. Secondly, only about 10 percent of the premium paid by consumers actually makes it to the producer, which makes it an inefficient way of helping the poor. Most importantly, Fairtrade does little to aid economic development, focusing instead on sustaining farmers in their current state. Although helpful to some in the short term, this holds back mechanization, diversification, and moves up the value chain. And by requiring farmers to form co-operatives, Fairtrade rules reduce opportunities for labourers to get full-time, permanent jobs and can foster corruption. The report also details the range of alternatives available to ethical consumers, which may be better options than Fairtrade.

Download PDF file  

The effects of globalization on inflation are complicated and substantial research on this topic has been lacking, producing a level of uncertainty. This paper hopes to address four key aspects of the issue: how globalization is affecting prices, wages, asset prices and the overall implications for monetary policy. While in the long–run globalization tends to have a null effect on inflation as imbalances like wage–expectations and price arbitrage are corrected, in the short–run, the impact is more uncertain.

Download PDF file 

An insight into the Philosopher Economist who defined the Moral Foundation for the Free Market Economy.

For today's critics selfishness has been replaced by reference to greed and if that is not sufficiently colourful - "crass greed". "Greed is good" is even said to be the creed of the proponents of free markets and in today's universal media distribution this has gained widespread currency. Such negative perceptions of the market economy have the potential to undermine its moral foundation and therefore its general acceptance. However Smith shows a free market economy does not depend on greed; indeed, Smith's central notion of self-interest is quite different to greed.

Dowload PDF file  

This report, A Flat Tax for the UK – A Practical Reality, calls for income tax to be simplified into a flat rate tax of 22%. Under the proposal, there would be a tax-free personal allowance of £12,000.

As the report says, the concept of a flat tax, a simple tax system that charges a single rate of tax on all income, is growing in popularity. It contrasts clearly with the current systems operated in most countries, with different tax rates depending on the level and type of income or on the personal circumstances of the individual taxpayer.

Download PDF file

Because the flat tax is paid on all income above that threshold, the rate can be very low. It ranges between 13% and 33%. The low rate encourages payment. There are no tax loopholes, nor the need for them, given the low rate. Instead of paying accountants to shelter income and move it offshore, people find it cheaper just to pay the tax. And a low rate makes it more worthwhile to earn more, which brings economic expansion.

A flat tax is simple, letting people understand their obligations. It is fairer, with low earners paying nothing and the rich paying their due. And it unleashes all the talent and enterprise being held back by a devious and complex system.

Download PDF file (350 kbytes)

The fall in coffee prices has been caused by a 15% oversupply in coffee production. It is a market response to excessive production, rather than evidence of corporate wickedness. More efficient techniques and improved technology may cause prices to fall further. Those who advocate prop-up pricing schemes such as 'fair trade' may have the best of intentions, but they will probably encourage the less efficient producers to keep at it, maintaining the over-supply. What farmers should do is to diversify into other products. Instead of a token gesture such as paying a few pence extra for a cup of coffee, we should be opening our markets to their goods, and cease selling subsidized crops in competition with theirs on world markets.

Download PDF file  

Distinguished actuary and government advisor on pensions Alan Pickering believes he has found a way to overcome the savings crisis that could just have everyone agreeing. Better education, simplification, a wider role for employers- but the key measure is to massively increase the basic state pension, while raising the retirement age too.

Download PDF file  

Sale of the government's racehorse betting monopoly - the TOTE - cheap to a panel of racing interests would be a lucky windfall to wealthy owners but daylight robbery for the taxpayers who are supposed to own it, says Keith Boyfield. This ASI report led to a European Commission decision to block the government's cosy deal with the racing industry.

Download PDF file

The only booming sector in the UK seems to be the public sector. We've skimmed the Guardian's jobs pages and added up the cost of all those community awareness co-ordinators (30,000 of them each year, at nearly a billion quid in salaries). Our report, by Jonathan Woolham, shows exactly where your hard-earned tax money is going.

Download PDF file