"The IEA continues to show the vitality and relevance of free market economics." – David Willetts MP
Christopher Snowdon, Head of Lifestyle Economics and Research Fellow at the Institute of Economic Affairs
Christopher Snowdon is an independent writer and researcher. He is the author of The Art of Suppression (2011), The Spirit Level Delusion (2010) and Velvet Glove, Iron Fist (2009). His work focuses on pleasure, prohibition and dodgy statistics. His blog is Velvet Glove, Iron Fist. He became a Research Fellow at the IEA in January 2012.
The IEA’s Lifestyle Economics programme focuses on the regulation of controversial products and activities. In this short essay Christopher Snowdon explains what it is and why it matters.
If market liberals stand idly by as the state sets prices, restricts commercial speech and demonises industries (and their customers), they will stand for anything. Under the pretext of ‘public health’, basic levers of competition—price, content and marketing—are increasingly falling under state control. With the advent of minimum pricing and plain packaging, the possibility of the government dictating how much a product sells for and what it looks like has become very real.
These developments are of no little concern to free marketers and social liberals. We are told, for example, that the obesity “epidemic” requires us to accept “a more invasive role for government.” The European Union openly discusses the need for “lifestyle regulation”. When New York mayor Michael Bloomberg decided that it should be against the law to sell a pint of Coca-Cola, a professor of medicine declared that: “The trivial issues of personal freedom in this case pale before the public health and welfare exigency.” Although it is predicted that one in three children born today will live to the age of 100, we are told that our health is at risk like never before from “non-communicable diseases” caused by our lifestyles. In the face of this “crisis”, we are expected to sacrifice liberty as if we were on a war-time footing.
Some would argue that the liberties under threat are of a minor nature, or are only of concern to the industries involved. But it is not the businessman who suffers most when prices rise and choice is restricted—he may find ways of profiting from both—but the consumer. And whilst it is inevitable that when authorities infringe on liberty, they begin with products and activities which are controversial or obscure, liberals recognise that there is an important issue of principle at stake that goes far beyond the unpopular and perhaps unsavoury test case. It therefore falls to liberals to defend “trivial issues of personal freedom”. If they do so, the bigger issues of personal freedom often take care of themselves.
This is not merely a philosophical position. The hazards and failures of state paternalism can be shown empirically, and the Lifestyle Economics workstream will put hard evidence at the heart of all its publications. Even if we accept that policy should be viewed through the narrow lens of ‘public health’, many of the interventions recommended do not work on their own terms. Every man-made law must overcome the law of unintended consequences and the law of demand. Time and time again, we see well-intentioned but ill-considered policies backfire by fuelling the black market, exacerbating poverty and encouraging more harmful consumption.
Adam Smith said that he had “never known much good done by those who affected to trade for the public good”. The same might be said today of those who purport to act in the public interest today, whether they be self-appointed protectors of ‘public morality’ or those who work in that nebulous and ever expanding industry of ‘public health’ which today provides the mandate for almost limitless state interference in what we eat, whether we smoke, how much we exercise, how much television we watch, how m