A wise, balanced article on national economic options which lie immediately ahead, post pandemic – published by the HBR, written by Philipp Carlsson-Szlezak, Paul Swartz and Martin Reeves of Boston Consulting Group As an extraordinary recovery is underway, it won’t be long before business leaders face a perennial political economy question: With wages rising and …
Category: 20. Nations
Jul 17
Britain is running out of new ideas and it’s killing productivity
Writing in Cityam.com, Sam Dumitriu, Research Director at the Entrepreneurs Network, addresses a longer term problem with current efforts to improve national productivity – the problem being that, despite more brainworker inputs, the impact of their new-ideas is becoming more and more marginal It is no secret that Britain is in a productivity slump (if …
Jul 02
High productivity figures pre-Covid masked some underperformance
Martin Wall, writing in the Irish Times, reports that Leo Varadkar, Tánaiste (Irish Deputy PM) says the government is seeking to have a record 2.5m people in work in 2024 – he offers some ideas which other nations might consider Ireland’s high national productivity figures before the Covid crisis masked significant areas of underperformance in …
Jun 20
Back to dreary normal?
Chris Dillow makes several interesting points in an article in the Investors Chronicle, finishing on a ‘slender’ positive note The economy is returning to normal. Latest figures show that since November real GDP has risen 3.5 per cent and the number of employees by 429,000. Yes, both are still well below pre-pandemic levels, but we’re getting there. Which …
Oct 06
£300 million to boost UK manufacturing productivity by 30%
Businesses with creative ideas to boost the UK’s manufacturing capacities are set to receive £300 million of joint government and industry funding according to the Department for Business, Energy & Industrial Strategy, UK Research and Innovation and The Rt Hon Alok Sharma MP in the announcement below – on the plus side, any such investment has to …
Aug 23
Academics to boost productivity growth and level-up living standards
Here we go again – our leaders announce the supreme importance of productivity growth to the improvement and levelling up of UK living standards – then they have to be seen to be ‘doing something’ – so three years ago they set up a PLG (Productivity Leadership Group), but that has had no notable success …
Jul 06
Next CBI boss finds ray of hope in coronavirus crisis
A dash of optimism from NEIL CRAVEN for the MAIL ON SUNDAY – however, given the track record of the CBI and ‘Be the Business’ summarised below and their evident failure to date to improve UK productivity, we note the lack of practical support and ideas for UK managers in the following piece- but nevertheless …
Jun 18
CBI a closed-shop for McKinsey alumni?
The CBI (Confederation of British Industry) claims to be the UK’s largest employers’ group, although the IoD (Institute of Directors) might dispute this claim – they assume to be the mouthpiece for British management, forever putting their views for change to the UK government They have just announced that Tony Danker – apparently ‘a business …
May 05
Pandemic offers a productivity boost?
An interesting article by Chris Dillow was recently published in the Investors’ Chronicle Has the coronavirus solved the UK’s problem of stagnant labour productivity? It’s a strange question, but one posed by Office for Budget Responsibility (OBR) forecasts. It expects that in 2021 we’ll be producing 2.8 per cent more than we did in …
Mar 15
Financial data can be ‘dangerously misleading’
This is a transcript of a second broadcast interview of UK economist Ed Smythe by the USA’s Real News Network GREGORY WILPERT: Welcome to the Real News Network. I’m Gregory Wilpert, joining you from Quito, Ecuador. The Bank of England has raised interest rates in the UK for the first time in a decade. The …
Feb 27
Universal Credit conflicts
In a new report, presented to the House of Lords Economic Affairs Committee, researchers argue Universal Credit should focus on supporting people into decent and productive work where their skills and capabilities will be developed and used effectively. A ‘work first, then work more’ approach facilitated by Universal Credit, which is focused on placing conditions …
Feb 23
Following the wrong stars?
“The lacklustre level of productivity growth in the UK, commonly measured as the level of output per hour worked, has been evident ever since the financial crisis in 2008/09 and has, as of yet, shown so signs of coming to an end” So claimed an article by Eleanor Stevenson, written for Ebury Partners UK …
Jan 12
The puzzle to persist?
According to Valentina Romei, writing in the Financial Times, the last decade saw living standards in the UK grow at their slowest rate since the second world war She says: “The jobs bonanza, and the economy’s performance as a whole, was undermined by weak productivity, which grew at its slowest level in 60 years” She …
Dec 10
Wasted time at school
Government sanctioned waste has a lot to answer for Ministers might bang on about the importance of productivity improvement but their thinking seems restricted to vital investment in infrastructure, R&D and skills training Drive around any town mid-afternoon and see streams of kids walking home from school – and wonder what they do when they …
Nov 11
Productivity crisis fixed?
The Times has announced a project to be run by the strangely named ‘Be the Business’, a government sponsored initiative aimed at solving the productivity crisis said to be afflicting the nation 100 big companies, including Amazon, Aviva, BAE systems, British Land, Cisco, Google and Rolls Royce, ‘will promise to boost UK productivity by encouraging …
Nov 08
More recognition of ‘consumer surpli’
A splendid article by Diane Coyle, Professor of Public Policy at the University of Cambridge and contributor to www.project-syndicate.org, has just been posted by the East African Business Week – it’s entitled ‘Rethinking Productivity’ and helps explain much of the current productivity puzzle supposedly afflicting many developed nations, including the UK The word “productivity” typically …
Oct 21
National inputs also ‘seriously flawed’
Official measures of GDP are said to be ‘seriously flawed’ Now, a report by the OECD (Organisation for Economic Co-operation and Development) and the Centre for Cities think tank claims ‘millions more people are unemployed than official statistics suggest’ Worse still: “The joblessness rate could be three times higher than thought” because some three million …
Oct 13
At last, official recognition of the ‘GDP gap’
Yian Mui reports on CNBC that the US Federal Reserve wants to know what the internet is worth to you. He says the answer could help the central bank solve one of the most puzzling paradoxes of the modern economy: The current expansion is the longest in history, yet productivity gains are weak and GDP growth, …
Oct 11
New UK ‘Productivity Institute’
Productivity of UK businesses is set to be supercharged with £88 million in new government investment announced the Department for Business, Energy & Industrial Strategy: £88 million new government investment to help close the productivity gap between UK and major world economies and turbocharge British businesses investment will help power the next generation supercomputers which …
Sep 26
A National ‘Balanced Scorecard’
All nations – governments and their electorates – need a National Balanced SCorecard (NBSC) of performance measures – a set of cardinals they each can monitor which covers all important factors affecting their standard of living (SoL) and quality of lives (QoL) The NBSC would be a mix of measures – some absolute, some subjective …
Aug 29
BoE powerless in UK productivity crisis
Tim Wallace in the Daily Telegraph reports Mark Carney, Governor of the BoE – Bank of England – saying: “Britain’s economy has a new, lower speed limit” Growth can only get to even modest levels before inflation takes off whereupon ‘we must ease our foot off the accelerator’ Ben Broadbent, one of Carney’s deputies, claims: …
Jul 22
A new ISC rides to the rescue
Puzzle no more about dormant national productivity – the cavalry have arrived in the form of Andy Haldane, chief economist of the BoE (Bank of England) who is to chair the government’s new ISC – Industrial Strategy Council – it’s another quango of sorts for a select few of our great and good to deal …
Jul 15
Further UK education needs
“The new prime minister will have to rise to the skills and productivity challenge, and make sure that everyone, no matter where they come from, can get a chance to have a great job”, says Anne Milton, UK Minister for Skills and Apprenticeships The following is an article she wrote in FEWeek I want the …
Jun 25
Turbocharging Australian productivity
Adrian Blundell-Wignall, former director of the OECD and professor at Sydney University, says: “It’s not enough to tweak R&D incentives – we, Australia, need a detailed plan that will change the whole climate for smart investment and productivity growth During the (recent) election, the focus was on tax cuts and “having a go” The Treasurer …
Jun 11
GDP – Consumer Surpli
Consumer surplus is defined as the difference between the highest price a consumer would have been willing to pay and the price actually paid It’s the unquantified value customers obtain from tangible stuff they buy – such benefits include taking less time or effort to do things, obtaining more fun and pleasure from life, having …
May 04
GDP – Flaws
At present, GDP is universally taken to be not just a measure of national output but also shorthand for national well-being Richard Tomkin, assistant director of the ONS (Office for National Statistics), which collects all the base data, says: “GDP is used as an all-encompassing proxy for people’s living standards although never designed for this” …
Apr 04
Puzzle – What puzzle?
“The Miracle Years Are Over – get used to It” So announced Ruchir Sharma, a contributing opinion writer for the NEW YORK TIMES, in a well-argued article reprinted with only minor tweaks below Across the world, economists have had to downgrade growth forecasts – but it’s not as bad as it sounds Last year (2018) …
Jan 31
Productivity tops Brexit
An article by Peter Barker, Gui Tao and Xinhua – www.xinhuanet.com Improving productivity, instead of the Brexit issue, is the primary task facing the British economy at the moment, says renowned British economist Jim O’Neill “The UK being in or out of the EU (European Union) is not the most important thing facing our economic …
Dec 21
Clusters need roads
An article by Maria Machancoses, a director at Midlands Connectvestment, is fully reproduced below For centuries, good roads have influenced the way we live, work and trade As a nation that makes over 80% of journeys by road, and whose population is forecast to grow to 75m by 2050, investing in our ageing infrastructure is rightly at the top of the agenda. Rather than …
Dec 12
UK productivity gap half-explained?
According to Philip Aldrick, Economics Editor of The Times, Britain’s dismal productivity gap with much of the developed world is due not only to lack of investment, bad management and low interest rates as previously thought Another significant causal factor has been found The UK’s ONS – Office for National Statistics – asked the Paris-based OECD …