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Cameron is an ‘Enemy of Enterprise’

On Sunday, David Cameron addressed the Conservative Party’s Spring Forum in which he declared war on the ‘Enemies of Enterprise’. It does not mean a lot, but it is a great fantastic. But, the most pressing issue is: what is an ‘Enemy of Enterprise’?

An ‘Enemy of Enterprise’ is: High Regulation; High Taxation; and Low Investment. The first two, high regulation and high taxation, are addressed through the creation of Enterprise Zones, a relic of Thatcherism.

An Enterprise Zone is an area in an economically deprived region where regulation and taxes are reduced in order to attract businesses. The most notable of these Enterprise Zones is the Docklands aka Canary Wharf et al. The Enterprise Zones work in such a way that they are responsible for the initial attraction. What is needed for an Enterprise Zone to become successful is investment in order rejuvenate the area (aesthetically) and to improve the infrastructure. This investment, especially for the infrastructure, comes from the government. The private sector, due to its fragmented structure, cannot command the large financial resources required, but are largely available to a government.

Without the necessary investment from the government the Enterprise Zones will become an expensive failure and thus damage the recovery further and stifle enterprise due to a stagnation in the economy.

Categories: Uncategorized
  1. Ust Oldfield
    January 23, 2012 at 10:19

    Reblogged this on The Guerrilla Economist.

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