Government intervention is exacerbating the cost of living crisis

Kristian Niemietz writes for CapX

Dr Kristian Niemietz, Head of Political Economy at the IEA, has written for CapX outlining the IEA’s proposals to tackle the cost of living crisis.

New IEA research, edited by Kristian Niemietz and IEA Head of Public Policy Matthew Lesh, examines how deregulation in six different policy areas could relieve significant pressure off of struggling households.

Kristian writes:

“How is it possible that so many people are struggling to make ends meet? The short answer is that capitalism’s ‘Schumpeterian’ tendencies can be overridden by other factors. In particular, government policy frequently gets in the way.”

“What makes the British situation different is that we were already starting from a bad place. In terms of the basic necessities of life, the UK was already an unusually expensive place to live long before the current cost-of-living crisis hit us. There is nothing inevitable about this. It is the result of bad policy choices, which could be reversed.”

Read the full article here.