Let’s focus on the economy, stupid – Daily Business Magazine

Encouraging entrepreneurs is key to improving the country’s wellbeing, writes KEITH ANDERSON

In the recent elections across the UK the central concern was the cost of living. A fact that was reenforced by the recent “Understanding Scotland Economy Tracker” by the David Hume Institute and Topley Partnership. When the economy is struggling it always becomes the most important issue.

This was recognised by James Carville, an adviser to the Democratic Party candidate for the presidency in 1992, who stated “the economy, stupid!”, used to great effect by his victorious boss, Bill Clinton.

The use of the word “stupid” might offend our more reserved political discourse, at least that would have been the case thirty years ago, but the point which was being made is that it is unwise to concentrate on anything else.

In this year, the 250th anniversary of the publication of Adam Smith’s “Wealth of Nations” is it too much to hope for a rekindling of the entrepreneurial spirit and political support for that and the creation of wealth?

Across the UK, and especially in Scotland, there are many ambitious, talented, and highly motivated entrepreneurs and every effort must be made to encourage them to build businesses from which we can all prosper.

What would help is if the political classes caught up with the majority view of the electorate and put the economy centre stage. The First Minister’s’ words at the recent CBI lunch offered some encouragement, but the unfortunate truth is that there is a fundamental lack of understanding, and more importantly meaningful practical experience, of business across the political classes, and it is no better at Westminster.

Effective government requires that all the talents available are used in the best way for the common good, and ideally there should be a balance between those who understand what must be done to create wealth and those who understand how best to distribute that wealth once it has been created.

Again, if only the politicians might catch up with the electorate more than half of whom, according to the Understanding Scotland Economy Tracker, have cut back non-essential spending because of a lack of confidence in the economy. Without a vibrant economy, and the tax revenues that flow from that, we cannot continue to enjoy the public services which all citizens reasonably expect.

This message needs to be understood more widely, and I wonder if the newly appointed Scottish Government Finance Minister (a teacher by profession) can find funding for that to be taught in schools.

In my own sector, the legal industry, there are obvious ways in which to stimulate growth, and that is by implementing, at long last, the regulations to allow the introduction of external capital to, and external ownership of, legal businesses.

As a proud member of the legal profession in Scotland it was dispiriting, when earlier this year attending a legal conference in London focused on the legal industry and its growth prospects, to hear the exciting developments in England and realise that many of those are unattainable for law firms in Scotland, and yet the primary legislation to allow such alternate business structures was enacted 16 years ago.

The Scottish legal profession is respected the length and breadth of the UK, and it deserves to be given a level playing field, and with that the fire power to grow further for the benefit of the economy.

As another Democratic Party President, JF Kennedy, famously said, “a rising tide lifts all boats”. Surely, still an ambition if we are all to prosper, whether in work or not. Otherwise, there is a danger that we will all eventually run aground.

Keith Anderson is the CEO of Vialex

Like this:

Like Loading…

Related

#Lets #focus #economy #stupid #Daily #Business #Magazine