How to Make Britain Prosperous Again with Sam Bowman
Nov 22, 2024
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Sam Bowman, founding editor of Works in Progress and expert in competition policy, delves into the roots of Britain's economic stagnation. He points out the role of high energy costs and outdated infrastructure, advocating for urgent reforms in planning systems. The discussion highlights the challenges of renewable energy, suggesting nuclear power as a more reliable alternative. Bowman emphasizes the need for regulatory changes to boost efficiency and lower electricity prices, offering insights on navigating bureaucratic obstacles in infrastructure projects.
Britain's economic stagnation is largely attributed to high energy costs and an outdated planning system hampering productivity and growth.
Reforming planning regulations and investing in nuclear energy could significantly lower costs and stimulate economic recovery in the UK.
Deep dives
Introduction of Instagram Teen Accounts
New Instagram teen accounts provide automatic protections to enhance teen safety online. These accounts come with built-in limits on who can contact teenagers and the content they can view, fostering a safer environment for young users. Additionally, teens under the age of 16 are required to obtain parental approval to alter their safety settings, ensuring that parents remain involved in their child's online experience. This initiative aims to help teens connect securely with people and topics that matter to them, highlighting the platform's commitment to youth safety.
Examining Britain's Economic Stagnation
The podcast delves into the reasons behind Britain's prolonged economic stagnation, emphasizing the need for effective growth strategies. Notably, issues such as high energy costs, particularly the tripled industrial price of energy from 2021 to 2024, are identified as significant barriers affecting productivity and industry. The discussion highlights the contrast with France, which, despite its own challenges, has managed better economic performance due to a more efficient use of resources and investment in infrastructure. Addressing these economic challenges through targeted policies is deemed essential for revitalizing growth in the UK.
High Costs of Infrastructure and Housing
A critical examination reveals why the cost of building infrastructure and housing in the UK is disproportionately high. Factors such as an outdated planning system, which hinders development and incurs excessive bureaucracy, are identified as major contributors to inflated costs. For instance, the planning application for a vital tunnel project under the Thames reportedly ran to 360,000 pages and incurred costs far exceeding those of similar projects abroad. The conversation further stresses the importance of reforming planning regulations and introducing market-driven incentives to re-enable efficient building practices and alleviate the housing crisis.
The Role of Nuclear Energy in Economic Recovery
The podcast underscores the potential of nuclear energy as a solution to the UK's energy crisis and to stimulate economic growth. Despite being a low-carbon energy source, the costs associated with building new nuclear plants have soared, driven by excessive regulatory adjustments and planning challenges. The discussion suggests that learning from international examples, such as the cost-effectiveness of South Korean nuclear plants, could provide a roadmap for reducing expenses in the UK. Reviving the nuclear sector not only promises cleaner energy but could also help lower industrial electricity costs, leading to broader economic recovery.
Sam Bowman, founding editor of the online magazine Works in Progress, now part of payment processing platform Stripe, joins to discuss why he thinks Britain has stagnated and the main problems hindering growth. He also offers what he considers simple solutions for tackling those problems.
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