Milton Friedman had a postulate about this. He got a Nobel Prize and all the rest of it, very fancy. But as soon as you interrogate this postulate, it’s manifestly rubbish. The postulate was that capital would move into a region hit by an adverse shock. So, Sheffield’s steel industry collapses. ‘Oh well,’ says Milton Friedman, ‘that means wages are cheaper, property is cheaper, and so capital will move in.’ Which sounds fine until you think about it for more than two minutes.
About the Author
Dr. Vikas Shah MBE DL has significant experience in founding, leading and exiting businesses to trade, private-equity and listed groups. He is currently a Non-Executive Board Member of the UK Government's Department for Energy Security & Net Zero (DESNZ). He also serves as a Non-Executive Director for the Solicitors Regulation Authority, The Institute of Directors, and Enspec Power. He is Co-Founder of leading venture lab Endgame and sits as Entrepreneur in Residence at The University of Manchester's Innovation Factory. Vikas was awarded an MBE for Services to Business and the Economy in the Queen's 2018 New Year's Honours List. In 2021, he became a Deputy Lieutenant of the Greater Manchester Lieutenancy. He holds an Honorary Professorship of Business at The Alliance Business School, University of Manchester, an Honorary Professorial Fellowship at Lancaster University Management School (LUMS), and was awarded an Honorary Doctorate in Business Administration from the University of Salford in 2022.