Entitled We economists have a Plan B that will work, Mr Osborne, a large and prominent group of British economists denounce the failure of UK government policy as reported this morning by The Guardian.
The most recent data on the British economy provided by national and international institutions (OECD, IMF ...) highlight that Plan A of the Minister of Economy Mr. Without reaching the scandalous Spanish figures, the total number of unemployed in the United Kingdom is now at its highest level in more than 17 years, while economic growth has practically stalled. Unlike in Spain, where the Spanish university is largely absent from these debates, British economists urge the government to "Adopt common sense emergency measures for a Plan B that can quickly save jobs and create new ones."
The key to the contribution of this plan B is that no severe adjustment will work under current circumstances without simultaneously stimulating aggregate demand.
British economists emphasize active policies at the sectoral level: environmental policies, renewable energy, etc. capable of generating new jobs or a space to create new industries and innovative companies
They point out that “doing nothing is not an option. Therefore, they urge the government to create an emergency budget that supports a Plan B for employment, equity and sustainability to quickly mobilize the economy towards growth.
Is the best industrial policy the one that doesn't exist?
It is curious that behind this proposal there is a "maxim" that has made its fortune in the neoconservative and liberal environment of the last decades throughout the world.
In Spain this phrase was pronounced by Carlos Solchaga in the eighties. Certainly in those years an industrial policy that was reduced to subsidies and protectionist regulations for public companies of the Franco era was not recommended. And much of the regional waste in lavish events and projects either, including the syndrome of underused infrastructure in this country.
However, the lack of Spanish industrial policy or its lack of efficiency is having high costs, especially for countries like Spain, where we have an adjustment with 5 million unemployed and the country is sinking more and more, far from hitting bottom. Active policies? Here's a list:
- Development of the digital economy: connectivity, incentives for private financing, conversion of unused spaces of great value into innovation ecosystems ...
- New efficient and sustainable energies and energy savings.
- Housing policy: restructuring of supply (home automation, green spaces, energy savings, innovative rental systems) and incentives for demand, new online marketing mechanisms ...
- Reconversion of universities into efficient technology transfer units, promoters of technology-based companies, start-ups, development of emerging sectors, solid support for the positioning of companies in medium and high technology exports.
- Reconversion of the foreign tourist image of Spain into a quadrilateral: gastronomy, sports, health and the environment.
- Efficiency of Public Administrations towards companies: creation, deregulation of absurd bureaucracies, incentives for good practices, smart tax legislation.
In Spain there are excellent specialists and talent to carry out these policies. The danger is when the ruling or party in power turns to people who have neither the preparation nor the vision to carry them out and only attend to their strictly political commitments. And of course, the final we ended up returning, after much unsuccessful spending, to that "the best policy is the one that does not exist."