Our economy is shrinking and the pound is falling in value. The Bank of England recently declared that the UK is in recession. It raised interest rates by 2.25% to address the worst bout of inflation it has seen in 40 years.
Kwasi Kwarteng (Chancellor of the Exchequer) announced a massive package of tax-cuts to help the cost of living crisis, and bring down inflation. But how can we stop this economic decline from happening again?
In his book Why the West is FailingJohn Mills, a veteran economist and businessman, claims that manufacturing is the key for growing our economy. He claims that if we increase productivity and manufacturing in the UK we will be able to rely less on the services industry to generate profit. We would also have the resources to import fewer of our goods and sell them to the rest of world.
He maintains that the fall of Western economies which began in the 1970s is “due to the dominance of a policy framework that has fatally ignored the importance of industrial competitiveness”. To achieve this, he supports investment and a competitive rate policy.
