Socialist solutions won’t solve cost-of-living crisis


In the Media

Victoria Hewson responds to The Times

Matthew Lesh writes for CapX

Matthew Lesh, IEA Head of Public Policy, has written for CapX on the emergence of ‘disaster socialism’ – solving complex economic problems by proposing simple socialist solutions, such as salary caps, nationalisation of indsutries and imposing lower prices.

On this, Matthew writes:

“They somehow want businesses to reduce prices, incomes to go up and higher taxes – all funded by reducing profits. In practice, this agenda would be unaffordable and force the closure of most businesses.

“The entire narrative surrounding profiteering is theoretically flawed and built on false evidence.

“The profit in other industries, like rail, water and electricity suppliers, is heavily regulated. The higher profits in some sectors will likely be short-lived and eaten up by higher costs and broader inflation.”

Read his article here.