Madsen Pirie writes for The Times on EU subsidy of rapeseed

ASI Madsen Pirie writes The Times's Thunderer column on how EU subsidies of rapeseed add to the nation's hayfever:

By careful breeding, Canadian scientists produced a low acid version. Rapeseed was transformed, and spread rapidly across Britain, changing the look of the spring landscape with its lurid yellow flowers. Its UK production soared from about 1,000 tonnes in 1970 to more than two million tonnes in just a few years.

It was not the crop itself that made it a farmers’ favourite but the EU subsidy paid to those who planted it. The EU paid cash not for the crop that resulted but to fund the seeds and planting. It was a bonanza for landowners.

Read the full article here.

Press release: Record EU immigration level is something to celebrate

Commenting on today's immigration figures, Sam Bowman, Deputy Director at the Adam Smith Institute said: "Today's immigration figures - the highest on record for immigrants from the EU - are good news for Britons. The vast majority of these immigrants are here for work or study, and the bulk of the evidence suggests that EU immigrants pay more in taxes than they cost the state in spending. That means less borrowing and lower taxes.

"Immigrants generally do not create unemployment or drive down overall native wages. They bring new skills to the economy and there is some evidence that they create opportunities for low-skilled natives to move into more highly-skilled work, boosting their wages. The fact that these immigrants are voting with their feet to come to the UK is a big vote of confidence in the British economy.

"There is no economic case for limiting freedom of movement within the EU, and the government is wrong to try to cut the number of skilled and student visas for immigrants from outside the EU. Instead of cutting Britain off from the world the government should focus on making the UK a welcoming destination for the best talents the world has to offer."

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

Dr Eamonn Butler speaks to CNN about replacing Adam Smith on the £20 note

Director of the Adam Smith Institute Dr Eamonn Butler spoke to CNN about the Bank of England's decision to replace Adam Smith on the £20 note.

Ben Southwood discusses CPI figures on BBC News

Head of Research at the Adam Smith Institute Ben Southwood spoke to BBC news about the latest CPI figures; he explains the difference between good and bad deflation.

Is Grexit finally off the cards? Sam Bowman argues NO in the CityAM Forum debate

Deputy Director Sam Bowman argues that even as Greece pushes closer to a debt deal, a Grexit is not fully ruled out yet:

Greece is in not one, but two holes. It owes €330bn (£237bn) in national debt, equivalent to 196 per cent of GDP, and its nominal GDP is also at a 13-year low. This means that unemployment cannot come down rapidly, as it has in the UK –where nominal GDP grew healthily after the crisis – so nominal wages will have to fall to a “new normal”. That takes an agonising amount of time, because firms prefer to sack some workers instead of cutting wages across the board. Greece’s future, then, looks to be one of persistent high unemployment. Before this is addressed the country cannot hope to overcome its economic malaise – it is simply not credible to expect supply-side deregulations to deliver the sort of growth Greece needs without a healthy level of nominal spending. That means no solution to the debt problem either. If Greece stays in the Eurozone, it will be on life support for the foreseeable future. It’s hard to rule out Grexit just yet.

Read the full debate here.

ASI comments on the latest CPI figures feature in Newsweek

Head of Research Ben Southwood's comments on the latest CPI figures feature in Newsweek.

This is the first time the UK has entered deflation since official records began in 1996 and the first time since 1960 based on historic estimates.

However, Ben Southwood, head of research at the Adam Smith Institute, said the negative figures should be embraced by consumers.

"We have deflation - albeit extremely mild deflation - for the first time since the 1960s. But this seems to be 'good deflation', coming mainly from cheaper goods - especially cheaper oil - rather than a drop in consumer demand," he said.

Southwood added that the Bank of England, which has set a target of 2% inflation, should remain vigilant against bad deflation.

Read the full article here.

Sam Bowman's comments on the removal of Adam Smith from £20 notes feature in The Daily Mail

Deputy Director Sam Bowman's comments on the Bank of England's decision to replace Adam Smith on £20 notes feature in The Daily Mail:

The change could leave Scotland with only one representative on Bank of England notes, inventor James Watt, who appears on the £50. Sam Bowman, of the think-tank the Adam Smith Institute, said: ‘It’s a great shame that the bank is removing Adam Smith from the £20 notes. ‘Smith is not just the father of economics, he is in many ways the father of the modern industrialised world.’

Press Release: This is good deflation – no need to panic

For further comments or to arrange an interview, contact Head of Communications Kate Andrews: kate@adamsmith.org | 07584 778207 Commenting on the new UK inflation figures, Ben Southwood, Head of Research at the Adam Smith Institute said:

We have deflation—albeit extremely mild deflation of 0.1%—for the first time since the 1960s. But this seems to be ‘good deflation’, coming mainly from cheaper goods – especially from cheaper oil— rather than from a drop in consumer demand.

Economists worry about deflation, but only the 'bad' kind, when prices are sliding at the same time as wages and output. Bad deflation makes debts harder to bear, puts people out of jobs, and can lead to a downward spiral. Good deflation, when wages and output are rising steadily, makes everyone better off.

Though the Bank of England should stand vigilant against bad deflation, and ease policy if markets think it is coming, it should hold fire right now as UK employees enjoy real pay increases for the first time since before the recession.

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

Sam Bowman discusses the living wage on BBC Radio Scotland

Deputy Director Sam Bowman spoke to BBC Radio Scotland about the benefits and consequences of the living wage and what could be done instead to put more money in the hands of low-paid workers. Listen to the full interview here. (Starts 1:40:30)

Sam Bowman's comments on the new Culture Secretary feature in The i

Deputy Director Sam Bowman's CityAM piece on John Whittingdale's appointment to Culture Secretary featured in The i:

The BBC was never meant to be the 5bn behemoth that it has grown into. It needs to be cut down to size, and the new Culture Secretary - John Whittingdale - might be the man to do it.