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> the UK economy (low productivity) (Not directing this at you, as I have no knowledge of what you consider low productivity to mean.) What is often missed in
by kcartlidge 4y ago
> the UK economy (low productivity)
(Not directing this at you, as I have no knowledge of what you consider low productivity to mean.)
What is often missed in the talk of low productivity is that the general assumption on hearing the phrase is that the problem is a lazy and unproductive workforce, which leads to the workers being an obvious target of blame.
In economics terms MFP is the more important view of productivity, and it's the amount of output that can be generated for a given set of inputs including not just labour but also capital/investment. And in general terms the largest issue here is not lazy workers but extractive management and asset-owners who take out the profits (as dividends, salaries, share buy-backs, etc) rather than reinvest them in the companies and the infrastructure. Without that investment the organisation remains below par for productivity as the inputs remain stagnant.
And that understanding shifts both the blame (and the required direction of travel to tackle the issue) to where it should be focused. Not pay, workers rights, etc, but addressing the inequality that allows that extraction which is the real cause of the productivity gap.