The single most important determinant of future living standards is whatever increase there is in labour productivity. Quite how that rises is, well, it’s arguable. Certainly, it’s not something that government directly controls. Sure, we get all that shouting about how i there was just more investment, a national investment bank, if The Senior Lecturer and John McDonnell controlled who did it, in what and where, then it would rise. Then we’ve the actual economists who seem to think that it’s about not enough new companies coming through. Or business dynamism, something we might describe as not enough companies going bankrupt.
The economists are right too:
Declining business dynamism and information technology
Gert Bijnens, Jozef Konings 19 July 2018