UK: The hard truth is that the economy is recovering, but productivity isn't

From theguardian.com

British businesses have survived the recession by stagnating and cutting pay. That bodes badly for future growth. Like the Italians, the British cannot help ploughing their cash into activities that earn diminishing returns. It's a cultural thing. The Italians are earning paltry returns from knocking out white goods in competition with the Chinese and Koreans. Every year, the trade deficit with China gets bigger, but the metal bashers of the Po Valley just keep doing what they have always done. In London, the major banks are struggling to wean themselves off casino trading, even though the returns are tiny compared ... (full story)