Is Britain sleepwalking into economic stagnation whilst authoritarian policies threaten our civil liberties? In this essential episode, IEA Director General David Frost and Energy Analyst Andy Mayer join host Reem Ibrahim to dissect November’s disappointing GDP figures, which show the UK economy growing at just 0.3%. Whilst a temporary bump in tax consultancy services ahead of the budget masked deeper problems, the reality is stark: Britain is falling further behind the United States and other major economies, with cumulative growth to 2030 forecast at barely 12% compared to nearly 60% for the BRIC nations. David and Andy expose how regulatory burdens, government interference, and disastrous energy policies have strangled British productivity and entrepreneurialism.

The discussion then turns to offshore wind contracts and the government’s net zero agenda, revealing how taxpayers are being forced to subsidise increasingly expensive renewable energy through contracts that lock in inflated prices. Andy explains how these arrangements guarantee profits for developers regardless of market conditions, whilst the government’s renewable energy targets drive up costs across the economy. The panel examines why Britain’s approach to energy policy has become so counterproductive, comparing our self-imposed constraints with more pragmatic approaches elsewhere that balance environmental goals with economic reality.

In a powerful conclusion, the conversation tackles the government’s troubling assault on digital freedoms. From proposals to ban X (formerly Twitter) in response to concerns about Grok AI to the recent U-turn on mandatory digital ID schemes, the panel exposes how Labour’s authoritarian instincts threaten fundamental civil liberties. David, who resigned as a minister over vaccine certification, draws parallels between digital ID systems and instruments of state control, whilst Reem highlights the dangers of centralised government databases tracking citizens’ every movement. This wide-ranging discussion reveals how technology is reshaping the relationship between state and individual, and why classical liberals must remain vigilant against creeping authoritarianism disguised as convenience or safety.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.

Welcome to Economics 101, a new series designed to distil the fundamental principles of economics into clear, easy-to-understand explanations. Join Dr Stephen Davies as he breaks down complex economic concepts using simple analogies and real-world examples, making economics accessible to everyone regardless of their background. Whether you’re a student, professional, or simply curious about how the economy works, this series will equip you with the essential knowledge to understand the economic forces that shape our daily lives.

In this episode, Dr Davies tackles the widely taught concept of market failure, which dominates contemporary economics teaching and public policy discussions. He explains how neoclassical economics defines market failure as any deviation from perfect market conditions, including externalities, public goods, information asymmetry, monopolies and sticky prices. However, Dr Davies challenges this entire framework, arguing that comparing real-world markets to an impossible ideal of perfect competition is like calling normal travel a ‘failure’ because we cannot move at the speed of light. He demonstrates how the phenomena labelled as market failures are simply features of the real world that markets must navigate, and argues that voluntary exchange and private solutions have historically proven more effective than government intervention at overcoming these challenges.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.

The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.

Join Daniel Freeman in conversation with Andrew Henderson, founder of Nomad Capitalist and one of the world’s leading advisers on international tax planning and strategic relocation for high net worth individuals. Henderson explains the philosophy behind his mantra ‘go where you’re treated best’ and why successful entrepreneurs and investors are increasingly voting with their feet, leaving high-tax Western countries for more competitive jurisdictions. From giving up his US citizenship eight years ago to building a global advisory business helping clients navigate second citizenship and residence options, Henderson offers a provocative perspective on tax competition and personal freedom.

The discussion reveals the stark reality facing the UK economy: the country now has the highest millionaire outward migration per capita in the world after China, with wealthy individuals fleeing to countries across Europe, the Middle East and beyond. Henderson explains why the cancellation of investor visas and the non-dom programme has made the UK virtually inaccessible for foreign investors and entrepreneurs whilst simultaneously driving British citizens abroad. He argues that Western countries, particularly the UK, have turned culturally against wealth creation whilst governments pursue ever-higher taxation, creating a perfect storm that pushes productive citizens towards more welcoming jurisdictions.

Looking globally, Henderson identifies where opportunity and quality of life are genuinely improving. Eastern European countries like Georgia and Serbia, alongside Southeast Asian nations like Malaysia, are offering not just competitive tax rates but improving infrastructure, rising incomes and better passport quality. He argues that whilst Western economies stagnate with anemic growth, the Global South is experiencing genuine prosperity gains, falling poverty rates and increasingly attractive lifestyles. For those willing to look beyond traditional Western destinations, Henderson suggests the future belongs to countries that actually want successful people rather than demonising them.

The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.