Banking must return to '19th century' principles

The Telegraph details our report proposals which propose bringing in a system close to the 'double liability' system found in 19th century American banks.

You can read the article here.

The report was also covered in Money Marketing, Yahoo News and Fund Strategy. 

Summary

Our latest report calling for bank executives to face greater liability for losses is reported in the Daily Telegraph.

Time to reject false choices and fears about immigration

Srinivasa Ramanujan isn’t a name most people know, but his story illustrates the power of migration to improve the world.

Born to a poor family in southern India in the late nineteenth century, Ramanujan displayed a remarkable mathematical mind from an early age, developing complex theorums as a teenager.

He was a genius, but he left school in poverty and seemed destined to live a life of subsistence. By chance, Ramanujan was discovered by another Indian mathematician and ended up at Cambridge, producing ingenious new ideas and eventually becoming the first Indian to be elected a Fellow of Trinity College.

Ramanujan was lucky. Had he not been discovered when he was, he could have easily spent a life in poverty, his genius untapped and giving nothing to the world.

The west’s immigration laws make it remarkably difficult for latter-day Ramanujans to exploit their potential. Ramanujan represents not just the geniuses lying fallow in subsistence agriculture, but all human talent that is not being tapped to its full potential...

Read the article in full in the New Statesman here. 

Summary

Sam Bowman writes in the New Statesman on the need for open borders to make the world's poorest better off and unlock the talent of more people.

UK's Osborne 'not delivering' on supply-side cuts

Sam Bowman talks on Bloomberg TV on the cabinet reshuffle. He argues that Osborne has not done enough to encourage economic growth and needs to change his policy. The change of personalities at the top of departments is irrelevant if policy remains the same. The government needs to make deeper cuts,  reduce business and labour regulation and free up the planning system to allow economic growth.

You can watch his interview here. 

New infrastructure cannot dig us from our economic hole

Read Eamonn's article in City AM here. 

Summary

Dr Eamonn Butler writes in City AM on why we should focus on paying down debt rather than throwing money at infrastructure projects in an attempt to boost employment. 

The Economics of the Madhouse

You can read his letter in full here. 

Summary

Dr Eamonn Butler writes a letter to The Guardian arguing that it would be a terrible idea for the government to start spending on big infrastructure projects. 

Voters say goodbye to nanny

Madsen also wrote a couple of blogs on the report's findings:

Conservative Home: Despite the nanny state, the British people retain a sense of personal responsibility and ambition.

Spectator CoffeeHouse: Voters say goodbye to nanny

Independent: We may be fat, but we don't like government going on about it

Evening Standard: Butty out! Half of voters say they do not want nanny state advice on food and booze

Summary

A new survey released by the ASI along with YouGov shows that Britons overwhelming reject the nanny state.

The report was covered by The Sun, Daily Telegraph and on over 30 regional newspapers. Madsen also went on BBC Radio London to discuss why people are fed up of being nannied by the state.

Britons say no to Nanny!

·     An Adam Smith Institute / YouGov poll has found that the majority of the British public do not see politicians as well-equipped to make personal decisions for them.

·     Most Britons do not think government should be telling them how much to drink or what they should be eating.

·     The public also believe that securing a job depends on their own efforts, not the government, with 71% of Brits expressing this view.

In a briefing paper released today by the Adam Smith Institute results of a recent poll show that Britons are not supportive of the growing nanny state. By large majorities the British public reject many aspects of the nanny state and prefer to make their own decisions.

Below are some of the key findings:

·     The majority of Brits do not believe government should provide advice on what foods people should eat and how much they should drink. 48% stated this, while only 22% believed government should provide advice.
·     Older people (those aged 60 & above) disagreed most strongly with government doing this. Social group C2DE also disagreed with government providing advice on what they eat and drink much more than ABC1. Dr Madsen Pirie, President of the Adam Smith Institute says in response to these findings: “Government has no right or mandate to single out some social groups and patronise them by restricting their free choices.”

·     Nearly two out of three Britons disagreed with the statement that ‘politicians and civil servants are well-equipped to make personal decisions on my behalf’.
·     Strongest disagreement to this statement came from those aged 60 or over (73%) and in Scotland (71%).

·     Well over two to one people in Britain think that their pension will come from their own savings. This was especially the case with Tories where 61% said this was the case, and only 19% disagreeing.

·     People in Britain think that getting a job depends on their own efforts, not the government.  71% of Britons agree with this position, versus only 7% who disagree.

·     Views on whether it is part of government’s job to make secure housing available break along party lines. Only 21% of Tory voters agree with this, but 48% disagree. It is the opposite with Labour voters where 55% agree that it is the government’s duty to supply secure housing, while only 16% disagree.

·     Despite the recent financial crisis, the desire to run their own business at some stage is high amongst young people. Of the 18-24 yr age group, 49% agreed with the statement ‘At some stage I would quite like to run my own business instead of working all my life for other people’, versus 27% who did not. The Scots disagreed with this statement the most with 44% of them not wanting to run their own business, and only 28% wanting to. 

The paper's author, Dr Madsen Pirie, welcomes the poll's findings.  He says: "They confirm that, despite recent economic troubles, there is still considerable self-confidence among the British, coupled with a determination to make decisions for themselves instead of having them imposed by politicians and bureaucrats."

Dr Pirie particularly welcomes the finding that large numbers of young people aspire to running their own businesses.  He comments: "It is new businesses that create the jobs and the future wealth of the nation, and this is a very positive indicator for the nation's future well-being, as well as that of the young people themselves."

ENDS

·      All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 1,742 adults. Fieldwork was undertaken between 12th - 13th August 2012.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

·     Britons say no to nanny is a paper released by the Adam Smith Institute, the UK’s leading libertarian think tank. You can read the full report at: http://www.adamsmith.org/sites/default/files/research/files/Britons%20say%20no%20to%20Nanny%21.pdf  You can view the full breakdown of results here: http://www.adamsmith.org/sites/default/files/research/files/Britons%20say%20no%20to%20Nanny%21%20Data.pdf

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Reform the regulators before reforming the banks

He writes that we need a proper reform of the regulators. Only when we get that right will the banks behave themselves.

Read the article in full on ConservativeHome here. 

Summary

Senior Fellow Tim Ambler writes in ConservativeHome that the regulators were inept at supervising banks and deserve a fair share of the blame for the financial crisis.

France’s Tobin Tax will make a little but damage a lot

In the article he details all the problems with the Tobin Tax. It is unlikely to raise much money and will increase volatility. However this may provide an opportunity for London as Paris's traders may choose to move across the waters to avoid this damaging transaction tax.

You can read the full article in City AM here. 

Summary

Sam Bowman argues in City AM that the introduction of France's Tobin Tax will be damaging to France's economy.

Obama and Will Hutton live in a world outside of economics. Successful people don't owe the state.

He argues that Obama has failed to recognise the importance of people being able to enjoy the fruits of their success. If we want to encourage others to take on the risk of starting and building their own businesses, we need a low tax rate to make that risk worthwhile.

You can read Tim's article in full here. 

Summary

Tim Worstall writes on Telegraph.co.uk on Obama's comments that the state enables all business success and therefore everyone who is successful owes everything to success.