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The UK’s Productivity Puzzle: Labour, Investment and Finance
Economic growth matters. The material improvement in living standards as measured by the increase in the production of goods and services has been an artefact of the modern world. Britain has been characterised as the first industrial nation (Mathias, 1969) and accordingly with a sustained period of economic growth, it reached a peak in 1900 of 9.4% of world output (Maddison 2010). This fraction has declined with the increasing growth of emerging parts of the world but also because Britain’s relative performance has tended to deteriorate.
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