UK: Editorial - How to grow.

UK: Editorial - How to grow. - If it were possible to design an economy from scratch, how should it differ from the modern British economy? What kind of institutions should it have, how big should its public sector be, relative to the total economy, and

If it were possible to design an economy from scratch, how should it differ from the modern British economy? What kind of institutions should it have, how big should its public sector be, relative to the total economy, and what kind and mix of firms should its portfolio of companies consist of?

Notwithstanding the difficulties being experienced right now by both the occidental and oriental variants of capitalism, it would be prudent to choose a free market economy, with a small public sector. Although such economies are clearly not immune to periodic recessions and persistent stagflation, their overall record is immeasurably superior to that of so-called "control" economies.

But one would need to establish some ground rules to ensure the free market is efficient and to protect it from its enemies. There is a "paradox of free markets" which states that if markets are too free, monopoly tends to develop. A strong anti-trust institution would, therefore, be needed, to maintain the freedom of markets and it would also be wise to foster market efficiency with a law guaranteeing freedom of information.

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