Going for growth

I agree with the dissident Conservatives who have asserted that the Government needs a clear growth plan. Furthermore, I believe we need to micro manage this; it is not sufficient merely to create the macro economic conditions for growth. Fundamentally the UK's reliance on the financial sector is unhealthy. It is unhealthy for two reasons - first it creates many moral difficulties, given the conduct of banks, arbitrageurs, hedge fund managers, speculators etc. Second it is clearly an inhibition on tax policy.

It seems to me that economic growth should be directed in four ways. First towards those industries where the Uk has a clear comparative advantage, e.g. insurance, bio technology, higher eucation, entertainment, sport, technology generally. Second it should be directed towards growth with long term benefits, i.e. infrastucture, communications and the like. Third it should be environmentally beneficial, ie. renewables, eco technology. Fourth it should boost employment and the quality of the worforce, especially the young workforce

This may look a little like socialist planning, 1970s style, but we hve proved, I think, that the free market simply does not work when it comes to long term benefit. The free market is fundamentally short term. Only governments can inject the necessary long term considerations into the market economy. Ah yes, but, of course, the political cycle is also short term - i.e. five years, ten at most. Now that is a problem......