Diego Zuluaga appears on BBC Radio Humberside
In the interview Diego argues that when you want to increase productivity there are two ways you can do this: to encourage people to move to the productive places, or for the government to investment capital in the less productive areas. Evidence shows over the last few decades that the latter solution is far less effective than the former. Various government programmes have promised to raise productivity levels but have simply been unsuccessful. What they do do, is keep people in these less productive areas therefore not helping them to raise their living standards.
Listen to the full interview here. Diego’s segment begins at 14:15
Further IEA Reading: Taxation, Government Spending and Economic Growth