Second, he has not noticed that the quantum of investment is not what matters: it is what it is used for that matters.
Quite so, quite so. It’s not how large the input is that matters, it’s how large the output is. So, if Britain saves and invests less but still gains a fruitful economy then we must be using that capital more efficiently. Which is good, economic efficiency is good.
And Wolf also fails to ask the glaringly obvious question, which is why when the City of London hosts the second largest financial market in the world is it that we save and invest so little?
Because we’ve a financial market allocating capital efficiently. QED.