Productivity paradox?

Polly Toynbee: ‘It remains a perplexing problem that UK productivity is still below that of most of its competitors, a problem for both government and business…
‘The argument for how regulation can improve productivity was recently powerfully put by an unlikely proponent: Michael Heseltine – the man who once promised a bonfire of regulations. He said that, despite Germany’s recent stumble, “a great deal of German productivity gains came because their government imposed ever higher standards on manufacturing which could only be paid for by improved productivity. You cannot live in a civilised society without regulation”.
‘France has at least 20% higher productivity – despite (or because of?) its “inflexible” and “over-regulated” employment laws. So the cause of British low productivity may be found in low regulation, low pay, low valuation of a disposable workforce. It was lack of regulation that created the monstrous US stock market bubble, allowing an Enron to be audited by an Andersen in a feral capitalism that has led to vast damage to the global economy. Capitalism only thrives when tightly regulated.’

About David

I am an environmental writer, journalist and speaker living in Cape Town, South Africa.
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