How Not To Improve Living Standards
Roger Bootle, managing director of Capital Economics, on the politics of pointing at things and saying how expensive they are:
If a government really wants to do something to improve the long-term income prospects of its citizens, including the poor, it should concentrate on five difficult things: managing the macro-economy conservatively so as to ensure stability and continued full employment; investing fully in infrastructure and encouraging private investment; minimising the barriers and costs in the way of starting businesses and employing people; reforming the welfare system so that people are not tempted by a life of idleness; and ensuring that young people have educational attainments adequate to enable them to acquire decent skills so that they have something valuable to offer in today’s demanding world.
The Government has made a promising start on this agenda – although there is a long way to go. By comparison, trying to improve living standards by directly suppressing the price of things that people buy will achieve nothing.
Nicely done.Tagged in: economics, free market, margaret thatcher
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