Preparing for a crisis: The case for social insurance

Dealing with an unforeseen crisis is a challenge for any government. But as the IEA’s Director General Mark Littlewood points out in today’s Times, we already have a tried-and-tested method of dealing with one-off shocks – namely, insurance.  Our system of national insurance has changed dramatically since it was first introduced by David Lloyd George, and is now, to all intents and purposes, merely another form of general taxation, used to fund everyday expenditure.  In recent times, governments have adopted a “spend as you go” strategy. As a result, we are forced to rely on extensive borrowing when an unexpected crisis hit.   Have our politicians forgotten the importance of saving for a rainy day? Is our national insurance system salvageable? And what learnings should the government take after this crisis is thankfully behind us?  On this week’s podcast, IEA Director General Mark Littlewood joins Emily Carver, the IEA’s Media Manager to discuss how we could better prepare for future crises.