Saturday 18 November 2017

Guardian letter on pay and productivity

Now that research has been carried out on levels of productivity on a city by city basis, and found unsurprisingly that the economy would be far larger "if all cities were as productive as those in the south-east", is it not time to investigate earnings levels in a similar manner (Productivity study shows south-east miles ahead,16/11/17)?
     The fact that "growth in earnings" nationally is lagging well behind the inflation rate is well documented, but it would be interesting to see the changes in pay levels on a regional basis, and whether the most recent 2.2% increase in the July-September quarter would be replicated in all areas (Jobs data suggests Britain`s employment boom has ended, 16/11/17). Presumably this percentage rise is positively affected by pay levels in the City, as it is difficult to see levels rising nationally, even at 2.2%, when a pay freeze for state sector workers is in operation.
   The truth is that if as much had been invested by successive governments in education and infrastructure in all areas as it was in London, the UK`s productivity problem would be less significant. A sensible tax policy for the very rich would have prevented short-termism in business, and encouraged CEOs to invest in technology and training rather than to accumulate wealth for themselves and shareholders!

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