Tuesday, August 13, 2019

No, Productivity Does Not Explain Income — Blair Fix

Did you hear the joke about the economists who tested their theory by defining it to be true? Oh, I forgot. It’s not a joke. It’s standard practice among mainstream economists. They propose that productivity explains income. And then they ‘test’ this idea by defining productivity in terms of income.
In this post, I’m going to show you this circular logic. Then I’ll show you what productivity differences look like when productivity is measure objectively. They’re far too small to explain income differences....
Naked Capitalism
No, Productivity Does Not Explain Income
Blair Fix, a PhD student at the Faculty of Environmental Studies at York University in Toronto, Canada and author of ‘Rethinking Economic Growth Theory From a Biophysical Perspective‘ 2015)
Originally published at Economics from the Top Down; cross posted from Evonomics

No comments: