The U.Ok.’s new prime minister, Liz Truss, has an formidable plan to revive her nation’s flagging financial system. It’s the one plan any British politician or economist has been in a position to provide that has any shot at success. It additionally very possible received’t work, alas, and largely by no fault of Ms. Truss. Right here follows a morality story about fashionable economies and the trendy political proper.
The U.Ok. for years has suffered a productiveness disaster, usually delicately known as a “puzzle.” To the extent Britain’s financial system has grown over the previous decade, it has carried out so primarily as a result of a better share of the inhabitants was working, not as a result of individuals have been working extra productively. That is an funding drawback created by large authorities and accompanying taxation and regulation.
