by Dan Mitchell
Because of my support for Brexit, by contrast, I was intensely interested in the results of yesterday’s election in the United Kingdom.
So you can imagine my joy when the BBC announced at 10:00 last night that Boris Johnson and the pro-Brexit Conservative Party were going to win a landslide.
Here are maps showing the results, as well the seats that changed hands (it’s a parliamentary system, so a party that wins a majority of seats can form a government).
At the risk of oversimplifying, the Conservative Party (the Tories) prevailed because they picked up dozens of working class seats. Like American Democrats (at least in 2016), the Labour Party has been captured by the urban left and lost touch with ordinary people.
But here’s the data that I find most encouraging.
When asked before the election about why they might be worried about a Corbyn government, every single group of voters (even Corbyn supporters!) was worried that he would spend too much money,
And many of them also were concerned he would damage the economy.
Why is this data encouraging?
Because we’re always told about polls suggesting the people support bigger government. I’m skeptical of these polls because they basically ask voters whether they would like Santa Claus to exist. So it’s not a big surprise the people say they want free things from government.
This data, however, suggests that – when push comes to shove – they understand that freebies aren’t free. As Margaret Thatcher warned, left-wing governments eventually will run out of other people’s money.
Now that Boris Johnson has won and has a big majority, what comes next?
I’m assuming a genuine Brexit will happen (yes, politicians have a nasty habit of doing bad things, but I can’t imagine Johnson engaging in the level of betrayal that would be required to strike a deal for a Theresa May-style Brexit in name only).
So I’ll be watching two other issues.
- Will Boris become the next Margaret Thatcher? I’ve already fretted that he’s too sympathetic to big government, but hopefully he pursues a pro-market agenda. Lower tax rates and genuine federalism (explained here by the Institute of Economic Affairs) would be a good place to start.
- Will the U.K. and E.U. agree to a good trade deal? In hopes of avoiding regulatory competition, the European Union doubtlessly wants any future trade deal with the U.K. to be based on regulatory harmonization. That would be very bad news. The U.K. should pursue a pact based on genuine free trade and mutual recognition.
Fingers crossed for good answers to these questions.
P.S. Regarding yesterday’s election, there were some big losers other than the Labour Party. The people who sell property in places such as Monaco, Cayman Islands, Jersey, Bermuda, and Switzerland doubtlessly are disappointed that there won’t be an influx of tax refugees escaping a Corbyn-led government.
by Dan Mitchell
Daniel J. Mitchell is a leading expert on fiscal policy issues such as tax reform, the economic impact of government spending, and supply-side tax policy. Mitchell is a strong advocate of a flat tax and international tax competition. Prior to joining Cato, Mitchell was a senior fellow with The Heritage Foundation, and an economist for Senator Bob Packwood and the Senate Finance Committee. He also served on the 1988 Bush/Quayle transition team and was Director of Tax and Budget Policy for Citizens for a Sound Economy. His articles can be found in such publications as the Wall Street Journal, New York Times, Investor’s Business Daily, and Washington Times. He is a frequent guest on radio and television and a popular speaker on the lecture circuit. Mitchell holds bachelor’s and master’s degrees in economics from the University of Georgia and a Ph.D. in economics from George Mason University. Original article can be viewed here.