Tag Archives: productivity

A British tradition of inefficiency and silliness

3 Replies

While many British industries are forward thinking and reasonably efficient, i find Britons take particular pride in traditional craftsmanship. That is, while the Swiss seem to take no particular pride in their coo-coo clocks, the British positively glory in their handmade products: hand-woven, tweed jackets, expensive suits, expensive whiskey, and hand-cut diamonds. To me, an American-trained engineer, “traditional craftsmanship,” of this sort is another way of saying silly and in-efficient. Not having a better explanation, I associate these behaviors with the decline of English power in the 20th century. England went from financial and military preëminence in 1900 to second-tier status a century later. It’s an amazing change that I credit to tradition-bound inefficiency — and socialism.

Queen Elizabeth and Edward VII give the Nazi solute.

Queen Elizabeth and Edward VII give the Nazi solute.

Britain is one of only two major industrial nations to have a monarch and the only one where the monarch is an actual ambassador. The British Monarchy is not all bad, but it’s certainly inefficient. Britain benefits from the major royals, the Queen and crown prince in terms of tourism and good will. In this she’s rather like our Mickey Mouse or Disneyland. The problem for England has to do with the other royals, We don’t spend anything on Mickey’s second cousins or grandchildren. And we don’t elevate Micky’s relatives to military or political prominence. England’s royal leaders gave it horrors like the charge of the light brigade in the Crimean war (and the Crimean war itself), Natzi-ism doing WWII, the Grand Panjandrum in WWII, and the attack on Bunker Hill. There is a silliness to its imperialism via a Busby-hatted military. Britain’s powdered-wigged jurors are equally silly.

Per hour worker productivity in the industrial world.

Per hour worker productivity in the industrial world.

As the chart shows, England has the second lowest per-hour productivity of the industrial world. Japan, the other industrial giant with a monarch, has the lowest. They do far better per worker-year because they work an ungodly number of hours per year. French and German workers produce 20+% more per hour: enough that they can take off a month each year and still do as well. Much of the productivity advantage of France, Germany, and the US derive from manufacturing and management flexibility. US Management does not favor as narrow a gene pool. Our workers are allowed real input into equipment and product decisions, and are given a real chance to move up. The result is new products, efficient manufacture, and less class-struggle.

The upside of British manufacturing tradition is the historical cachet of English products. Americans and Germans have been willing to pay more for the historical patina of British whiskey, suits, and cars. Products benefit from historical connection. British suits remind one of the king, or of James Bond; British cars maintain a certain style, avoiding fads of the era: fins on cars, or cup-holders, and electric accessories. A lack of change produces a lack of flaws too, perhaps the main things keeping Britain from declining faster. A lack of flaws is particularly worthwhile in some industries, like banking and diamonds, products that have provided an increasing share of Britain’s foreign exchange. The down-side is a non-competitive military, a horrible food industry, and an economy that depends, increasingly on oil.

Britain has a low birthrate too, due in part to low social mobility, I suspect. Social mobility looked like it would get worse when Britain joined the European Union. An influx of foreign workers entered taking key jobs including those that with historical cachet. The Brits reacted by voting to leave the EC, a vote that seems to have taken the upper class by surprise, With Brexit, we can hope to see many years more of manufacturing by the traditional and silly.

Robert Buxbaum, December 31, 2016. I’ve also written about art, good and bad, about the US aesthetic of strength, about the French tradition of innovation, And about European vs US education.

The mystery of American productivity

3 Replies

Americans are among the richest and best paid people in the world. On a yearly basis, Americans produce and earn about 20% more than Britons and about 30% more than Japanese. On an hourly basis, counter to what you might expect, American workers produce about 30% more than Britons or Canadians, and about 50% more than the vaunted Japanese.

Per hour worker productivity, from the Economist. We do OK for backward hicks.

Per hour worker productivity, from the Economist. We do OK for backward hicks.

French and German workers produce about as much as we do, per hour, but tend to work fewer hours. Still, the differences are not quite what you might expect. French workers take many more hours off than we do and are still so much more productive than the British that it appears they could take an extra month off and still beat them in yearly output. Japanese workers meanwhile produce only as much as the French, per year, but take far more hours to do it. One thought is that it’s all the vacation time that makes French so productive and it’s perhaps the lack of vacations that causes the Japanese to be relatively unproductive.

Not that vacation time alone explains our high productivity, nor that of the Germans or Italians relative to the Canadians and Britons. One part of an answer, I suspect, is that we put fewer roadblocks to workers becoming business owners, and to running things their own way. Another thought is that US and Germany have a low minimum wage, comparatively, and Italy has no minimum wage at all; Germany had no minimum wage in 2013, the time of the productivity comparison. In countries like this, there is a larger profit to be had by clever individuals who work hard, think, and start their own businesses. With minimal requirement on how much to pay, the business owner can bring to bear a mix of low-wage, minimally productive workers with labor-saving innovation, allowing them to become rich while decreasing unemployment. It also allows them to serve otherwise under-served parts of the market and profit from it. And profit is a powerful motivator. As Friedrich Nietzsche said, “a why beats a how.” 

The nine European countries with no minimum wage are among the richest on the continent, and among those with the lowest unemployment: Iceland, Lichtenstein, Norway, Sweden, Finland, Denmark, Austria, Italy, and Switzerland. By contrast, England, Canada, and Japan have relative high minimum wages and relatively high unemployment. There are also some poor countries with no minimum wage (Egypt, Zimbabwe, Rwanda…) but these countries suffer from other issues, like rampant crime. I’ve argued that the high “Living Wage” in Detroit is a major cause of Detroit’s high unemployment and bankruptcy. If low minimum wage is a major source of American worker productivity and wealth, it would be a real mistake to raise it.

Worker productivity is the best single predictor of long-term national success. As such, the long-term prediction for Britain, Canada, and Japan is not good. Unless something changes in these countries, we may expect to see them off to a long, dark tea-time of declining significance. Perhaps, it is a fear of this that was behind the resounding defeat of the Labour party in British elections last week. The Labour government oversaw England’s last big drop in productivity.

R.E. Buxbaum, May 28, 2015. It’s also possible (unlikely) that US universities are really good, or at least not as bad as thought. We don’t seem to quite beat the enthusiasm out of our students, though we do drug them quite a lot. Here’s a Forbes article on minimum wage.