I was delighted when Jon Moynihan became a peer. He has done much to foster more and better businesses in the UK and has much to offer to the debate on how the UK can grow faster and create greater prosperity and wealth for many. His often unfashionable views and clear analysis deserves the Lords as a platform.
He is this week launching the second volume of his important book on growth. This is a great book which all interested in the future of the UK and our prosperity should read. Its main themes set out how to deliver the faster growth we need and will be no surprise to readers of this site. He backs the lower taxes I have always campaigned for, and draws on Laffer’s work that higher rates can lead to less revenue. He believes that smaller government is part of the answer, preferring competitive providers charging buyers and users directly. He promotes free trade internationally. He chooses Adam Smith , not JM Keynes for economic guidance.
The book is a treasure trove of data and arguments to show how these three principles when applied work well. He shows how the more a state chooses government ownership and direction and the more it goes for higher taxes the poorer it becomes. He wants more Singapore and less Venezuela and North Korea in policy.
The disagreements I have relate to priorities and tactics as to how we could get the UK back to greater free enterprise, freedom and growth. Jon for example argued for doing away with pensioner fuel payments before Labour. I think that a bad idea to do in cold snap in winter when government is forcing our energy prices ever higher. We need to address the underlying problem of energy markets rigged against UK consumers. I would start by dismantling the self defeating net zero energy bans, subsidies and adverse price fixing, not by mugging the pensioners.
Jon is also a vigorous free trader. Of course the world would be richer if all allowed tariff and obstacle free trade. We need however to survive in a world where many others play unfairly, so there are areas like food and defence equipment where we need to consider national security as well. It can sometimes be better to be a multilateral rather than a unilateral dismantler of barriers.
These are tactical arguments born of a wish to see more the recommendations in Jon’s book adopted. The overall case is a strong one, well researched and argued. Back this book.This is the best book on how to remodel our economy for growth available. It should be compulsory reading in government.
January 13, 2025
Good morning.
If I may, on behalf of everyone that is a very kind comment, Sir john. Thank you. 🙂
There indeed does need to be some barriers. Free Trade should come with ‘equivalency’ attached. By what I mean by equivalency is that standards are broadly the same. Same materials, standards, pay, working conditions etc. Just because a company say in China can make a similar product cheaper does not mean that a company in the UK must go bust despite said UK companies product being that much better made and longer lasting.
I have always argued that markets should be free and fair and that governments should work towards that end and not directly determine what and how much is produced. eg BEV’s. We need to see the end of Soviet style tractor or wind turbine production announcements.
January 13, 2025
Jon is of course an outlier in the debate on governance and growth strategy. His ideas are diametrically opposite to the uniparty belief in tax, spend borrow and waste.
We had 14 years of tory government with 5 as coalition meaning all 3 major parties where involved in the UK s destruction.
Now we have the Melon Green Party promoting a private members bill, supported by many MPs which is the final destructive document
Full speed ahead into the abyss cheered on by about 600 of elected politicians.
Madness.
Reply Jon is a Conservative peer. There is no uni party.
January 13, 2025
However good the book, we must waste and decline a further 4.5 years, unless the current incumbents implode. Then we are dependent on their replacements being prepared to take the steps necessary to effect a recovery from whatever low we reach. Had lunch with a well retired, very senior employee of HMRC. His verdict was that we are on a path of economic and cultural decline from which there is no prospect of recovery or reversal. Singapore offshore Europe is a dream cancelled. The currwnt path is a nightmare.
January 13, 2025
The book does sound very interesting and might also be good reading for economics students, whether their universites recommended it or not.
The US is about to test of two of Moynihan’s themes. I wish President Trump success in reducing the size of government, but he’s also not a free trader, saying and he’ll embark on tariffs. The latter does worry me, as the results (including reciprocation, worsening foreign relations etc) are somewhat unpredictable and can be disruptive to wealth and peace.