The Economy in Plain English with Dieter Helm

Past event: Monday 5th February 2024

At the David Hume Institute, we're on a mission to get more people talking and thinking about the economy. That's why we've launched a new series of online live events, where you can ask questions and get answers in plain English.

Hosted by journalist Clare English and Susan Murray, Director of the David Hume Institute we discuss the Economy in Plain English.

Last week with Professor Graeme Roy, Economy in Plain English discussed economics being about the allocation of scarce resources.

This week, Sir Dieter Helm, Professor of Economic Policy at the University of Oxford and Fellow in Economics at New College, Oxford discussed what would a sustainable economy look like and how to build it - and why it matters.

Dieter told us he is not considered a mainstream economist - but what does this mean? Have a listen to the conversation and see if you think these ideas are or should be mainstream.

Key points:

• Conventional economists look at the flows of goods, services, expenditures and incomes. The sustainable economy starts with the balance sheet of the assets and asks how well the stocks of these assets are being looked after or stewarded.

• What is left to spend now is net of having first made good any damage we have done. If you own a house and have neglected to fix a hole in the roof, you will not pretend that you are better off and can spend more because the money has not been spent on fixing the roof. Your house would be worth less. You would in effect be eating up your capital, mortgaging the future for the benefit of your spending today.

• Citizens of the sustainable economy have entitlements and rights, as well as duties and obligations to others now and to the next generation.

"What is not sustainable will not be sustained. The consequences of climate change do not go away because we refuse to address its fundamental causes."

Watch the recording below.

Find out more in Dieter's book Legacy: how to build a sustainable economy is available to download for free here.