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The Postwar British Productivity Failure

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  • Crafts, Nicholas

    (University of Warwick)

Abstract

British productivity growth disappointed during the early postwar period. This reflected inadequate investment in equipment and skills but also entailed inefficient use of inputs. Weak management, dysfunctional industrial relations, and badly-designed economic policy were all implicated. The policy framework was partly the result of seeking low unemployment through wage restraint by appeasement of organized labour. A key aspect was weak competition. This exacerbated corporategovernance and industrial-relations problems in the British 'variety of capitalism' which sustained low effort bargains and managerial incompetence. Other varieties of capitalism were better placed to achieve fast growth but were infeasible for Britain given its history.

Suggested Citation

  • Crafts, Nicholas, 2017. "The Postwar British Productivity Failure," CAGE Online Working Paper Series 350, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:350
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    More about this item

    Keywords

    competition; productivity; relative economic decline; varieties of capitalism JEL Classification: N14; O62; P170;
    All these keywords.

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • P17 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Performance and Prospects

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