Blog topic 2:What has caused the significant productivity gap between UK and the US?

In 2005, Britain’s output per hour worked rose by 0.9 per cent, according to the Conference Board. But before that, it was just falling. Because productivity was less.

The answer to this question is Labour productivity, since labour came to power in 1997 Britain's output has fallen, because the cost of labour has increased, which means the quantity of labours are decreased. Since the cost of the labour is high, labours will spend less hours working than usual. Because their salary's will be higher. These facts will cause the productivity to decrease.
And here is a little graph for better understanding. I tried to draw it, unfortunately i couldn't(for some reasons :(.... I have snatched this graph from internet, but it's a nice one.





The difference beween US and UK's productivity is high. Because US uses computers better and by adopting more aggressive management of staff.Almost 80 % of the productivity difference between Britain and the US in this study came from the use of computers.

With low unemployment, long hours and high numbers of people in work, Britain must improve productivity growth if the economy and living standards are to rise rapidly.

But, Britain is in recession and there are loads of unemployed people. Britains economy is falling, it will be tough for britain to make a stability, but they have a chance to make it in 2012 Olympic games. ( only if britain doesnt explode :) )) joke