Well, at least I agree with his basic analysis:
And these new industries need to raise the growth rate from the historic 2% to over 3% in order to deliver jobs to stave off an employment crisis and sustain a sufficient tax base to support our existing public services.
Growth is the way out. But I\’m really not sure about his method of getting there.
Essentially he\’s saying that we need to move from an Anglo Saxon form of business financing (markets, equity, VC, private equity etc etc etc) to a more Rhineland type (banks making loans).
So the question is, has that Rhineland form of financing produced such 3% growth in other advanced economies where it has been tried?
I don\’t actually know. But I have floating around at the back of my mind that the UK\’s relative position, comparing ourselves to those Rhineland economies, has improved over the past 30 odd years. Which means that what we\’ve been doing has been working better than what they\’ve been doing.
But if anyone\’s got a table to GDP growth rates for, say, the OECD over the past 30 years then we can have a look.