Familiar challenges, new solutions?

This is a good summary of the economic performance and institutional challenges facing the UK: https://options2040.co.uk/economic-growth-and-the-productivity-puzzle-the-choices/

As someone who has been following the economic performance debate since the mid 1960s, it doesn't tell me much that is new, but that in a sense just reinforces the size of the challenge, particularly given the fiscal constraints.

Whilst the UK clearly needs a systematic industrial strategy rather than the ad hoc one we have at present, we need to learn from the policy mistakes of the past.

Short termism: the British disease

Short termism is a British disease.  It is driven by an over active stock market, now reinforced by the activities of hedge funds and private equity companies.  Short termism is not the only reason the UK has a chronic productivity problem. but it is certainly part of the picture.

I was struck by the following comment in the Financial Times yesterday about the success of Aldi and Lidl: 'Being private allows Aldi and Lidl to keep prying eyes at bay and not be held to ransom by shareholders if they do not meet their sales or profit forecasts.;

The chief executive of Aldi for the UK and Ireland said 'this is an absolutely tremendous strength of our business.  It means we can make very long-term decisions even when the road is bumpy.'

Solving or at least tackling the productivity problem may require structural change that is not politically feasible.