Freedom 101 is a personal refutation by Dr Madsen Pirie of many of the common errors of economic, political and social debate. He has selected 101 of these erroneous assumptions in order to show why they are not correct. Many of them are in daily circulation as if they were truisms. We are told that, 'the world is running out of scarce resources' or that, 'we should protect the poor by fixing the price of essential goods'. The author shows in his pithy style why these and other assumptions are incorrect. Of his selected 101, some are based on errors of fact, some on false arguments, and many of them on a misunderstanding of how economics works. This is a refreshing book, full of sharp insights to help readers clarify their own thoughts and equip them to bring that same clarity to aid the understanding of others in discussion and debate.
Unfair Trade
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.
Independent Scotland: The Road to Riches
If an independent Scotland chose to follow the Republic of Ireland's low-tax route, as SNP leader Alex Salmond has indicated it would, Scotland's growth rate might be expected, over a five-year period, to move closer to Ireland's trend growth rate of 7 percent. Given a further five years of Scottish growth at that trend level, and before diminishing returns set in, Scotland's growth over the ten-year period would put its index 71.5 higher, more than a two-thirds increase in GDP.
By contrast, says Stein, the rest of the UK would be expected to have grown rather less, by just over a quarter. The result would be dramatic for Scotland. Measured in household income per head, Scotland, which started £1,700 behind the rest of the UK, could be expected to be £6,000 ahead of it at the end of that period.
We believe that the new research study shows just what can be achieved if countries choose to follow the low tax route to prosperity, a route which took the Republic of Ireland from the poorest country in the EU (per head) to the richest. Scotland, it says, could match that performance.
Depoliticizing the NHS
This paper documents the bewildering and counter-productive range of political initiatives and interference which has wreaked such havoc on our nation's healthcare system.
The paper's proposal is for a distinguished panel of health professionals to be appointed to run the NHS, to allocate its budget, determine its priorities, and operate it according to medical needs rather than political aims. A YouGov poll taken on the subject shows massive popular support for precisely such a proposal, with 69 percent in favour and only 12 percent against.
The NHS budget would be set by Parliament every five years, and up-rated each year in line with inflation. The ASI's YouGov poll showed that this idea, too, enjoys widespread popular support, with 74 percent in favour. The suggestion that "the NHS has become a political football" receives 72 percent backing.
The Right to Choose: Yes, Prime Minister!
Sweden has been operating a choice-based school funding system since the early 1990s, with great success.
To promote this right to choose in the UK, three proposals are recommended: (1) parents should be entitled to remove their children from failing schools and choose any other school instead; (2) public finance would be available to all schools on the basis of the number of students they could attract; and (3) a non-refundable tax credit to provide parents with a pound-for-pound reductions in their income tax liability (up to an agreed limit) for each child they have in non-state education.
Road Map to Reform: Deregulation
"Over-regulation depresses corporate profits, consumes valuable management time and saps entrepreneurial morale," say the authors. "It makes the UK less attractive to investors and destroys the wealth creation on which the whole of government depends."
There are three big sources of red tape - the EU, Whitehell, and the regulatory offices like Ofcom and Ofwat. For each one, we need to make sure that fewer new regulations are created, that existing ones are rationalized, and that enforcement does not become over-zealous.
Read it here.
Working Welfare
Inspired by the successful US welfare reforms of the 1990s, the proposals in Working Welfare would make work central to the benefits system. All working age people not meeting national disability criteria would face "immediate work requirements". This requirement would be backed with tough sanctions – "no work, no benefits" – and any absence from mandated work without good cause would trigger a pro rata reduction in benefit payments. The ASI proposals would also revolutionize the delivery of welfare. Responsibility for its provision and administration would be devolved to local agencies, which would be paid according to results. Agencies would be rewarded for getting people into work for a set period of time, ensuring an ongoing and personalised service for jobseekers. The report also advocates raising the personal income tax allowance to £12,000, to tackle high effective marginal tax rates for those trying to enter the workforce, and to make life easier for those with low incomes.
Safeguarding civil liberties
This paper itemizes how recent government acts have compromised or removed many of the legal protections traditionally enjoyed under common law. These include habeas corpus, right to trial by jury, right to remain silent, freedom from double jeopardy, among many others.
It is proposed that a new judicial panel be established, independent of government, to review the effect of recent legislation on long-standing liberties, and to make recommendations as to how the impairment of liberties might be redressed. While the body's recommendations would not have the force of law, it is envisaged that it would be so prestigious that governments would find it impossible to ignore or sideline their pronouncements.
Open Access for UK Schools
Open Access for UK Schools: What Britain can learn from Swedish Education Reform argues for a radical overhaul of the UK school system.
Inspired by Sweden's experience, the report calls for the UK to implement a universal open access scheme, which would allow parents to send their children to any school of their choice – whether state, private or religious – and make these schools eligible for government funding on a per–pupil basis. Two conditions must be met: the schools must not charge additional fees, and must accept pupils on a first-come-first-served basis.
Transforming Higher Education
Dr Terence Kealey highlights the reasons as to why American universitites are superior to ours, and other economically advantaged nations. He states that the aim of all universities must be to move away from state dependence to independence, with there being an urgent need for their endowments to be restored to assist in this move.
The best universities in the world are independent, but in the UK we've made the mistake of allowing governments to fund - and therefore control - the universities directly. The Higher Education Funding Councils should be abolished, and the universities should be freed of state control. The HEFCs' funds should be transfered to needs blind funding agencies to allow students, regardless of background, to access higher education on the grounds solely of merit.