07/09/2026
Youth unemployment is 16.2%.
And the economist who invented the Laffer Curve has just told Andy Burnham why.
Arthur Laffer, adviser to Reagan and Thatcher:
“If you tax people who work and you pay people who don’t work, don’t be surprised if you find a lot of people not working.”
He’s in London this week to meet the Prime Minister.
His argument is blunt: stop taxing work so hard, stop making it cheaper to stay on benefits, and create jobs instead of paying people not to work.
Leave young people idle for a year or two, he says, and they become unemployable.
Britain’s tax burden is heading for 38% of GDP — the highest since the Second World War. A raid on the wealthy? Laffer calls that a “disaster”.
“I have never heard of an economy being taxed into prosperity.”
Is he right — or is this just another excuse to cut taxes?