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Supply Side Reform and UK Economic Growth: What Happened To The Miracle?

Published online by Cambridge University Press:  26 March 2020

Nicholas Oulton
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Abstract

Two institutions have retarded UK productivity growth in the post-war period: industrial relations and education. The failings of both were largely addressed in the 1980s. The productivity improvement of the 1980s was genuine and was largely due to the reduction in union power brought about by the trade union legislation of the 1980s. The 1980s and 1990s have also seen large falls in the proportion of the labour force which is unqualified and rises in enrolment rates in further and higher education, changes which tend to increase long-run growth. But two factors have obscured the extent o f the improvement. First, the whole climate for economic growth is less favourable than it was in the so-called Golden Age prior to the first oil shock in 1973. Second, UK macroeconomic policy compares poorly with other OECD countries: booms have been shorter and recessions longer, so that microeconomic success has been masked by macroeconomic failure.

Type
Articles
Information
National Institute Economic Review , Volume 154 , November 1995 , pp. 53 - 70
Copyright
Copyright © 1995 National Institute of Economic and Social Research

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Footnotes

∗

I owe thanks to Ray Barrell, Andrew Oswald, James Sefton, Paul Wallace and Martin Weale for valuable suggestions. I have also benefited from the comments of participants at seminars at the Prudential in London and in Oxford. All errors remain my own.

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