But there are no discussions: this is just what I thought about when I woke up this morning
At my age bowel evacuations are high on the list of early morning thoughts.
An industrial strategy means picking winners and losers. It does not mean throwing money at business and hoping some if it will stick. It means quite positively choosing the sectors, and on occasion, the specific activities that a government thinks will best suit the nation’s purpose.
It also means that innovation is directed. Whilst pure research can rarely be directed innovation can be because it develops existing ideas and improves their usefulness. Innovation tends to be much more expensive than research.
Appears the same is true for Ritchie.
First it demands an end to low tax for all business strategies in the vague hope that these might stimulate some growth. There is no proven evidence that such an approach works to achieve anything other than growth in corporate tax piles, a rise in inequality and tax avoidance as people incorporate in the small business sector.
Instead an industrial strategy requires direct investment, targeted loans and, when appropriate, subsidies. Whatever Brexit agreement we reach these should be possible: other EU countries manage them. But, and it’s an important but, ministers had better be ready for some failures because they will happen. In that case making sure the investment portfolio has some diversification without losing focus would be wise.
But, and I repeat the point, low tax is not an industrial strategy.
Yes, very much the same.