Economy, Regulation

It’s the investment, stupid

There is a powerful polemic from Paul Johnson in the Financial Times today. A taster sentence:

Any serious policy must start to tackle the neglect that has resulted in our backlog of low investment; it must cut through the gridlock caused by chaotic regulation that prevents building and strangles small business; end the discouragement to work and entrepreneurship created by our crazily designed tax and welfare systems; put a stop to the myopia that has failed to provide a long-term and stable fiscal and policy environment; and, yes, it should alleviate the powerlessness created by an overly centralised Whitehall so that more investment decisions are devolved to mayoral authorities.

The focus is on investment, and the barriers to it. A step towards combatting such barriers is the formation of the 2030 Prosperity Alliance, which, to be honest, looks like Looking for Growth without the Gen Z rizz. While a noble cause, I am not sure that harking back to Beveridge’s “Five Giants” model (1942) is the best framing. Still, I wish them, and anyone else promoting British growth, the best of luck.

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