That fallacy was exposed by the experience of the
succeeding years. If public expenditure were the way to growth Britain would be one of the most prosperous countries in the Western
world. But it is not.
When my Government came to power in the 1970s, we неге determined to reduce government intervention and control and started to establish the sort of framework for the operation of free
enterprise to which I have referred.
Let me mention just a few aceas where we have already
sen the fruits of this approach in Britain.
Controls
For the first time in 40 years Britain is free of controls over incumes orices, dividends and foreign exchange
simultaneously.
Sound money
We have established and are maintaining a policy of sound money. The annual rate of inflation is now in single figures, and falling fast. In the last few days, the Chancellor of the Exchequer has said that it could be down to 6% by the and
of this year.
Interest rates are falling too, and are more than
a third lower than they were last autumn.
Trade Union law
We have started to tackle the problem of trade union law. Industrial relatione in Britain are now good in the private sector. In 1981 we had the lowest strikes for 40 years
I hope that we have ended and reversed the decline in the competitiveness of British industry. Last year saw a sharp -mprovement In both competitiveness and productivity. It is a sign of the growing confidence in the British economy at home and abroad that during all the anxious days of the Falklands dispute the exchange value of the pound hardly waiver d
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