The Definite Article: The New Economic War?

Should tax rates be hiked to pay for the government’s monumental spending during the pandemic? Or would an increased tax burden choke an already beleaguered private sector – and stifle any meaningful economic recovery?

In the latest episode of The Definite Article, IEA Director General Mark Littlewood maps out the new divide between fiscal hawks and tax doves – as described in his latest column in The Times. While Treasury hawks look to tax rises to mitigate the colossal cost of coping with coronavirus, the doves argue for a go-for-growth strategy from Chancellor Rishi Sunak.

Are the hawks being too short-sighted? Have the doves underestimated the scale of the fiscal challenge ahead? And if the short term financial picture is dire, are the longer-term consequences even more calamitous?

Who will win this new economic war? Hawks or doves?

Find out as Mark and IEA Economics Fellow Julian Jessop are interviewed by Media Manager Emily Carver.

Read Mark’s column in The Times here (behind paywall):…