Fixing a broken economy with service-led growth and increases in public investment as well as welfare spending should be seriously considered Adam Smith, the father of economics, condemned as unproductive the labours of “churchmen, lawyers, physicians, men of letters of all kinds; players, buffoons, musicians, opera-singers, opera-dancers”. How wrong he turned out to be, says the Resolution Foundation thinktank. It points out that the creative industries accounted for 6% of the UK economy last year, and have grown faster than the UK economy overall since 2011.The report, Ending Stagnation, says the last 15 years of low growth and high inequality have seen a living standards gap worth £8,300 open up between typical households in Britain and those in France, Germany and the Netherlands. It suggests fixing this by growing the UK economy through its service sector – and the work of Smith’s “grave” lawyers and “frivolous” musicians – to pay for higher investment and higher benefits. Continue reading...