A UK in decline needs to rediscover supply-side economics

I just spent two weeks in a broken Britain, which is an unfortunately apt description for a country that has fallen from its former glory. Its people are funny, witty, creative, intelligent, sports-mad and educated, part of a society that has constantly evolved over the last millennium, its imperial heritage bringing in cultures from around the globe. It is a green and pleasant land, beautiful in spring and summer, and not too bad in the autumn.

Yet the once great nation is now dealing with a continued self-inflicted decline. The state of England’s roads, utilities and public services reveals the English talent for muddling through with little planning or organisation, winging the detail in the hope that things will work out – and the other parts of the United Kingdom are worse. There is an overwhelming sense that the public sector takes no responsibility for anything. There is no sense of service and insufficient pushback from the public.

Thirty years ago in China, one remarked on the state of the roads, the poor phone network, the length of time it took to get anywhere and how hard it was to see a doctor. That is not true in China now, but it is often so in Britain. I have singled out the United Kingdom, but most developed economies are also suffering from a regressive ennui where once leading-edge infrastructure lies dated and unmaintained.

Yet a look at most car parks shows many Britons are still comfortably off, if not cash-rich. The welfare system takes care of that. According to former Labour government minister Alan Milburn, more is spent by the government on benefits for young people than on helping them get jobs. Even he seems to think there is too much welfare. Every young person must struggle for a place in the world. They are not entitled and benefits sap their hunger for success.

As the 1960s moved towards a more caring society, some predicted the malaise that would set in. In 1961, US president John F. Kennedy said, “Ask not what your country can do for you – ask what you can do for your country”. Welfare entitlements erode that sentiment, especially as they expand to cover more people. Of course, “free money” helps governments get elected. Welfare has made Britain an entitled society feeding off the teat of public debt. How long can the public purse take the burden?

Don’t get me wrong, I’m in favour of welfare where it’s needed for the young teenage years, the old, the sick and people with disabilities. That is our contribution as human beings. I’m also in favour of regulation – but good regulation. Overregulation can potentially favour particular lobby groups or fashionable but unscientific theory.