The reaction to today's economic news, a slight increase of just 0.3 per cent on GDP this quarter, displays a classic case of our obsession with round numbers (MarketBeat call this phenomenon 'rounditis '). We love base 10 numbers and fluctuations around zero. In this case, it's the latter.
But we can still be optimistic, growth can still be expected to return despite a bloated public sector and heavy levels of taxation. For that we can thank human ingenuity. Even if our politicians can't see easy ways to get growth back to the UK, many of us are more willing to be entrepreneurs than ever. Mark Littlewood, director general of the Institute of Economic Affairs has called for politicians to free up our economy:
"Regulation is strangling the economy, whilst high marginal tax rates are disincentivising people from working, saving and investing. The government must reduce spending, cut taxes and enact key supply-side reforms to encourage business and enterprise. For a growth revolution, we need a policy revolution."
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