The Unassuming Economist

Source: Financial Times

“Territorial inequality of productivity is the core problem; it is what causes inequality of incomes that can only partly be remedied by redistribution. It also suggests an enormous amount of waste — if lagging regions could close at least some of their productivity shortfall, a lot of prosperity would be gained.”

This article delves into ways in which policymakers can deal with regional inequality in the UK, as the wait for further governmental action on it continues. It discusses some aspects on which productivity growth depends, like “slow-to-acquire resources such as infrastructure and skilled labour” and “productive businesses choosing to expand”. Further, it goes on to suggest measures by which this regionally lagging productivity growth can be remedied and ways to target such policies better.

Click here to read the full article.

Related Reading:

The Great Divide: Regional Inequality and Fiscal Policy