Labour productivity isn’t rising very much. Training budgets appear to be falling. So, the Spud tells us:
If you want an explanation for the first graph it’s in the second. We just don’t invest enough in people in this country.
Hmm, perhaps we could devise a solution? What if we reduced the taxation of returns to capital so that people invested more capital so as to raise labour productivity?
But then Spud is the one calling for a 23 percentage point rise in the taxation of returns to capital (NIC on investment income) isn’t he?