New Discussion Reveals Regulatory Burden Up to Six Times Greater Than Trade Friction on UK GDP

A recent discussion between podcast host Peter McCormack and trade lawyer Shanker A. Singham has brought to light a compelling argument for radical economic reform, particularly focusing on the United Kingdom's regulatory landscape. The conversation, titled "The Case for Radical Economic Reform," was published on YouTube on November 18, 2025, and delves into the systemic issues hindering the UK's economic competitiveness and innovation. The tweet by Dincer Hazar highlighted this significant exchange, urging engagement with the detailed analysis provided.

Shanker A. Singham, a respected UK economic mind and competition expert, contended that excessive regulation has rendered Britain's economy uncompetitive and stifled innovation. He emphasized that the negative impact of regulatory burdens on GDP per capita is substantially greater than that of traditional tariffs or tax measures. According to Singham's analysis, regulatory damage can be "two or three times as big as traditional tariffs and trade measures" and "five or six times as big as tax measures."

The discussion underscored that "competition is the benchmark" for evaluating regulations, asserting that rules should be judged by their effect on market competition and overall economic velocity. Singham argued that many existing regulations, while often framed as safety measures, primarily serve to protect incumbents and create barriers for new entrants. This regulatory bias, he explained, prevents the economy from moving quickly and adapting to modern challenges.

McCormack and Singham also touched upon the broader implications for governance and public understanding of economics. They highlighted a "deep state" problem where decision-making power is delegated to unelected bodies, leading to a lack of accountability and hindering effective reform. Both emphasized the critical need for better public education on economic principles to foster informed societal choices and political action.

Looking ahead, the conversation addressed the transformative impact of artificial intelligence on labor markets and the necessity for a re-engineered British state aligned with 21st-century needs. Singham pointed out that while some economic challenges are complex, improving the regulatory system to deliver more competitive outcomes is a clear path forward. This comprehensive dialogue serves as a significant contribution to the ongoing debate about the future direction of economic policy.