Government needs a growth strategy that unleashes business
- Published on Wednesday, 25 July 2012 12:35
- Posted by Scott Buckler
Responding to the latest GDP figures, Prof. Philip Booth, Editorial Director, at the Institute of Economic Affairs, said
"An expanding private sector is the key to economic growth. The government must do more to prevent stagnation of the economy. The four key measures it could take are a serious liberalisation of planning law; deregulation of labour markets; an end to the completely incoherent "green" policies; and radical reform of the welfare state.
"There are many factors impeding growth that are beyond the government's control, such as the eurozone crisis. That is not an excuse for inaction in those policy areas where the government can make a difference.
"Productivity and not unemployment is the main problem. As such, increasing government borrowing from current levels is clearly not the answer. It is time for bold supply side reform."