In this episode George & Gerald chatted to macro economist Doug McWilliams about the perennial topic of economic growth.
Growth doesn’t arrive by accident. They dig into a concrete plan to raise living
standards in the UK by combining a simpler tax system, targeted deregulation, and policies that bring more people back into productive work, drawing on insights from a new book Prosperity Through Growth.
It’s core argument is simple: in a world where talent and capital move easily, policy mistakes get punished quickly, and clarity becomes a competitive edge.
Doug explained why a staged path to a 20% flat tax alongside the abolition of national insurance could lift output over time, and why regulation—not just its level but its instability—has become a prime drag on investment. From planning rules that stall housing to compliance costs that turn basic banking into a slog, we explore the hidden frictions that sap productivity.
At the same time, we examine demographic headwinds—ageing, low birth rates, and falling participation—and the mixed lessons from Japan on how to sustain GDP per capita through smarter labour policies.
However there are some bright spots, the UK’s flat white economy—tech and digital services—is booming, helped by freedom from restrictive EU digital acts. We ask what else could grow if given simpler, stable rules and why drifting back into heavier frameworks could undo our brightest gains.
Finally to perhaps lighten the mood, rather than the usual book recommendations, the three of them discuss their favourite cars.
About Douglas McWilliams
Douglas McWilliams most recently co-authored with Michael Hintze, Matthew Elliot and the great Art Laffer ‘Prosperity Through Growth’ about how to achieve economic growth in a world of autocracy and AI. Previously he has written the Flat White Economy, identifying the unlikely growth sector in East London, The Inequality Paradox about how globalisation has reduced poverty worldwide while at the same time raising inequality in formerly rich countries and Driving the Silk Road, about how the areas between China and the West are being affected by Chinese industrialisation – the book emerged from the Peking to Paris car rally in which he participated in a 1950s Bentley.
Douglas was the founder of Cebr which he sold the day before the 2024 Budget. Previously he had been Chief Economist for the CBI and for IBM UK. He was the Gresham Professor of Commerce 2011-13 and chaired the economics committee of Business Europe
