What I Seek to Show

Abstract

This chapter previews the argument set out in the book. A change in economic policy is essential to prevent a fall in living standards in the UK and the US. Weak growth was the result of changes in demography and productivity, caused by the fall in the birth rate in the 1960s and in investment after the 1980s. We cannot change demography so we must increase investment. Conventional growth theory needs to be revised. Current consensus Total Factor Productivity Models are untestable and thus unscientific. This chapter proposes a revised model which is testable and robust when tested. This shows growth does not just depend on technological advance as it can be boosted by policies that encourage more tangible investment. The distractions that have led to a lack of debate over this are examined and policy measures to revive investment and growth are proposed.