Ryan Streeter is a Senior Fellow at the Legatum Institute in London. He was previously a domestic policy advisor to George W. Bush at the White House in Washington, DC.
On the one-year anniversary of the global financial meltdown, Great Britain faces a choice: do we continue to reinforce a culture of safety and stability, or do we begin anew to create a culture of enterprise? When people hear the word “enterprise,” they often think “business.” But enterprise has always been more about hope, innovation, and the ability to convert plans into jobs and opportunity for other people. Not all businesses, on the other hand, are of nature enterprising. Enterprise is a cultural phenomenon more than anything, and it needs advocates and representatives. It doesn’t happen on its own, and Labour has done little to cultivate it.
Since the collapse of Lehman Brothers on 15th September 2008, Labour has responded with a programme of safety and stability: historically unprecedented non-wartime public debt, increased tax rates, intensified regulations on banks and investors, and other measures.
These actions are understandable in times of crisis, but Great Britain cannot regulate and tax its way back to a position of economic strength. It cannot shame investors, bankers, and “the rich” enough to increase GDP and create new jobs. To be competitive in today’s dynamic and disruptive global arena, the UK needs to focus on rebuilding a culture of enterprise. Any government hoping to restore Britain to a path of growth needs to incorporate enterprise into its central message and portfolio of policies.
What is a culture of enterprise? First, it is an environment in which the rewards are worth the risks one takes to start a business, experiment with a new idea, and pursue a well-planned vision. A culture of enterprise is a culture of opportunity. Second, it is an environment in which the virtues of productivity do not go unrewarded. Just as employers value employees who possess qualities such as thrift, hard work, and ingenuity, investors allocate capital to enterprises that likewise possess them.
Recent Comments