How the Resolution Foundation is challenging the government's economic policies and calling for new strategies

How the Resolution Foundation is challenging the government's economic policies and calling for new strategies

How www.boersen-zeitung.de reports, the Resolution Foundation, together with the Center for Economic Performance at the London School of Economics, have called for a new government economic strategy. The think tank notes that Britain has experienced relative decline over the past 15 years, driven by low growth and high economic inequality. Productivity has grown at half the pace of other advanced economies. The call for different economic policies comes in anticipation of upcoming elections, which are expected to result in a change of government.

Analysis of the current situation shows that labor productivity in the UK grew by just 0.4% per year in the twelve years after the financial crisis, compared to 0.9% in the 25 richest OECD countries. This has had a direct impact on wage incomes, which rose below zero in the 2010s. The 15 years of no wage growth has cost the average worker £10,700 a year.

Economic inequality in Britain is greater than in any other major European country, although the statutory minimum wage has reduced hourly wage inequality. There are huge regional differences, especially between London and other large cities. To address the shortcomings, the Resolution Foundation is calling for public investment to be increased to 3% of GDP, as it is currently on average almost half higher in the OECD than in the UK.

According to my analysis, a change in economic strategy can have a major impact on the market and the financial industry. Increased productivity and reduced economic inequality could lead to positive market developments and rising levels of prosperity in the UK. It is important that the government act on the Resolution Foundation's recommendations to promote economic growth and social justice in the country.