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Download PDF by Robert Bacon, W.A. Eltis: Britain’s Economic Problem: Too Few Producers

By Robert Bacon, W.A. Eltis

ISBN-10: 0333233476

ISBN-13: 9780333233474

ISBN-10: 1349158631

ISBN-13: 9781349158638

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16 Britain's Economic Problem sector; Houghton gave very large increases to teachers, administrative grade civil servants have had increases of almost 100 per cent in three years while at the other end of the scale some of the worst paid National Health Service workers have had increases of up to 70 per cent in just one year. There have been other increases which have turned what was originally cheap labour into a major element in the costs of local authorities and the central government, and this has had much to do with subsequent explosive rate and tax increases.

4 per cent growth in output per worker. It has already been pointed out that subsequent events have shown that the assumptions about productivity growth in the plan were wholly realistic, so there was no fundamental technical obstacle to its fulfilment. The principal obstacles were two: first, its realisation would require a 55 per cent increase in industrial investment in 1964-70, a larger increase than Britain had achieved previously in just six years; second, a Labour Government could be blown off course by the balance of payments much more easily than a Conservative one because foreigners would expect it to follow prudent financial policies before they were prepared to lend substantial sums.

Cambridge University Press, 1972, Chapter 3, and S. G. B. Henry, M. C. Sawyer and P. , 1976. 2 The Lost Opportunities An outstanding fact that emerged from Chapter 1 is that Britain could have achieved almost everything for which the most optimistic hoped. The really crucial obstacle to rapid growth in any economy is slow productivity growth. If productivity advances only 2 per cent a year and a country's labour force is fixed, no power on earth can produce long-term growth at more than 2 per cent a year.

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Britain’s Economic Problem: Too Few Producers by Robert Bacon, W.A. Eltis

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