2 thoughts on “Yes, we have a productivity problem. No, we don’t need an ‘industrial strategy’”

  1. Posted 05/07/2017 at 21:01 | Permalink

    I wonder how the productivity of government is measured. One of the major differences between the UK and Germany is how health care is run. The UK has some very bad taxes e.g. that low rate of 5% VAT on domestic energy is hardly conducive to investment. And the UK has at least one hand out which has zero productive outcome in the winter fuel allowance, compared to the counterfactual of sticking £6/week on pensions and pension credit and the relevant applicable amounts.

  2. Posted 06/07/2017 at 08:37 | Permalink

    If you have to invest more per worker in order to get higher productivity per worker, is this necessarily desirable? You might get more output but you also have a higher cost for that output.

    Is it not possible that the UK specialises in areas where lower capital investment is necessary? We might actually be getting a higher return on investment, despite lower output.

    I haven’t seen any analysis of this. Does any exist?

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