KAled D comment : There is one similarity that is shared between the UK and Euro zone countries in terms of growth is the adoption of fiscal policies. Subsequently this has slowed down the general growth of these two regions. Over the past few years, the UK has been characterized by spiraling inflation, and unemployment.
Prof comment : I agree with you except for the inflation part; I don't see much inflation anywhere!
Prof comment: However when you combine the fact that employment is relatively high and productivity has declined in the UK, what does that tell us? If economic growth does not return soon, what will firms be obliged to do?
Note that I have also posted a new article (under "Statistics") in the Documents about the latest data on eurozone unemployment. I have also posted some graphs on some Greek data, with my own comments in the same file.
Abdulelash comment : well, that means that workers are less effective. Since workers are not producing much, companies may have to fire employees in order to reduce costs.
M comment: Or Britain probably have lost its advantage in producing some types of goods to another country, and thus, all the labor in that industry have shifted towards an unfamiliar one to them. They might need some education or training.
Prof comment : Do you really think that the British workers have changed job in the middle of a recession? Wouldn't it be the case that the firms are keeping them in the hope that demand will increase soon and thus that the workers will be ready to work harder as soon as demand picks up?
M comment : Well, that would be possible , I think, if the workers haven't been laid off at first place. I haven't looked closely to UK's employments statistics, but I've been trying to apply what we've learned from our chapters when I posted the previous comment. I believe that UK's low productivity rates are very related to the competitive advantage concept.
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KAled D comment : There is one similarity that is shared between the UK and Euro zone countries in terms of growth is the adoption of fiscal policies. Subsequently this has slowed down the general growth of these two regions. Over the past few years, the UK has been characterized by spiraling inflation, and unemployment. Prof comment : I agree with you except for the inflation part; I don't see much inflation anywhere! Prof comment: However when you combine the fact that employment is relatively high and productivity has declined in the UK, what does that tell us? If economic growth does not return soon, what will firms be obliged to do? Note that I have also posted a new article (under "Statistics") in the Documents about the latest data on eurozone unemployment. I have also posted some graphs on some Greek data, with my own comments in the same file. Abdulelash comment : well, that means that workers are less effective. Since workers are not producing much, companies may have to fire employees in order to reduce costs. M comment: Or Britain probably have lost its advantage in producing some types of goods to another country, and thus, all the labor in that industry have shifted towards an unfamiliar one to them. They might need some education or training. Prof comment : Do you really think that the British workers have changed job in the middle of a recession? Wouldn't it be the case that the firms are keeping them in the hope that demand will increase soon and thus that the workers will be ready to work harder as soon as demand picks up? M comment : Well, that would be possible , I think, if the workers haven't been laid off at first place. I haven't looked closely to UK's employments statistics, but I've been trying to apply what we've learned from our chapters when I posted the previous comment. I believe that UK's low productivity rates are very related to the competitive advantage concept.