British Economic Growth Before and After 1979: A Review of the Evidence

The paper surveys the evidence on British economic growth performance since the war. It is shown that the hypotheses proposed by Bacon and Eltis, Kaldor and Thirlwall to account for slow growth are inadequate and that supply side problems leading to poor productivity performance are the most plausible explanation of Britain's relative decline. It is argued both that these failings have their basis in the political and institutional legacy of postwar Britain and that the Thatcher years have seen only a partial solution to supply side weaknesses.