The faltering economy: Making do with less, The Economist, 21 July 2011
An assessment of whether demand or supply is to blame for Britain’s faltering growth path.
Also worthy of note is a recent article from the Centre for Business Research at the University of Cambridge. A paper by Bill Martin, The British Economy: As Good as it Gets?, argues that productivity weakness licensed by workers’ willingness to work for low real wages is symptomatic of an economy suffering deficient demand and excess indebtedness, and is not the result of a sudden loss of entrepreneurial flair. .By contrast, America’s productivity growth soared during the recession as firms sacked workers faster than their output fell. It has remained strong since, as hiring has been more sluggish than growth.