Growth Policy: The Pursuit of a High Growth Rate

Abstract

The widespread and continued concern about the rate of growth of the British economy in the period since the end of the Second World War is somewhat surprising in the light of Britain’s past growth performance. The available statistical information suggests that the rate of growth of real gross domestic product per head in the United Kingdom was higher in this period than in any other period of comparable length in British history. Further, the growth rate was relatively stable ; only twice since the end of the war did real G.D.P. per head actually decline (in 1952 and 1958). Business fluctuations occurred but mostly they took the form of higher than average or lower than average increases in output. The level of employment was sustained at a high level throughout the period. The percentage of the work force unemployed in any year never rose above 4 per cent; in most years it was considerably less.