Economic freedom, or economic liberty, is the ability of people of a society to take economic actions. This is a term used in economic and policy debates as well as in the philosophy of economics. One approach to economic freedom comes from the liberal tradition emphasizing free markets, free trade, and private property under free enterprise.
This is the economic model that the Libertarian Party subscribes to and is what made the United Kingdom one of the most free and prosperous countries in the world. As old industries contract and die, new industries and economic models come to the fore as new entrants.
The current model we live under used to be called a mixed economy with a private and public sector. The ratio veered back to favour the private sector during the Thatcher premiership. Since her fall from power in 1990, the last thirty two years have seen the growth of crony capitalism where political access is the path to success.
The banking crisis of 2008 saw the nationalisation of private debt , the banking bailout by Brown’s Government which he bragged to the House of Commons he had ‘saved the world‘, ended moral hazard for good.
Unless new emerging industries can access capital, we will be stuck with uncompetitive dying industries, seeking to protect their industries through protectionist public funding and legislation.
New Banking Entrants need to be allowed to compete with the sclerotic big banks especially on a regional basis. The big banks must either pay their bailout back or face being broken up.
Unless we do, the cost of living will just get worse.
Andrew Withers FRSA