Low growth has become the economic default in the West. While China
and other Asian Tigers continue to steam ahead, western
commentators either argue that stagnation is inevitable, ignoring
growth in order to focus on other factors such as inflation or
inequality, or disclaim growth altogether. In Why the West is
Failing, veteran businessman and economist John Mills strongly
refutes these arguments. He maintains that the anaemic performance
of western economies since the 1970s is due to the dominance of a
policy framework that has fatally ignored the importance of
industrial competitiveness. He shows that the key to driving up
productivity - and thereby growth - is to promote a revival of
manufacturing through investment and a competitive exchange rate
policy. This would produce the extra resources needed to tackle
climate change and reduce the risk of western politics continuing
to spiral towards populist excess. It would also allow us to impede
the baleful political consequences of Chinese economic domination.
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