How not to grow the economy

Both the Tories’ and Labour’s growth plans could make the depression worse.

Raising productivity the amount of value added by people per working hour is the only sound basis for improving living standards.

Strengthening productivity offers us an escape from our high-debt, low-growth economic trap.

Labour and Tories say businesses are investing too little and need more state help.

But state financial aid to business is self-defeating and hinders innovation.

Handouts encourage corporate dependency and reduce pressure on businesses to become more productive and commercially competitive.

US CHIPS and Science Act illustrates the sort of corporate constraints that can accompany state aid.