An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Monday, June 13, 2016
ECRI — Low Labor Productivity Growth The Main Culprit
Why invest in better equipment when you can lobby Congress for more cheap immigrant labor, instead?
Also, productivity is driven by manufacturing, which has largely moved offshore. The productivity of service jobs does not change much. I.e. a teacher can only teach so many students, a doctor can only treat so many patients, a bartender today can't serve more drinks than a bartender 100 years ago.
I'd say it's more of a reverse-Verdoorns Law. Slow growth is inhibiting large productivity gains.
ReplyDeleteWhy invest in better equipment when you can lobby Congress for more cheap immigrant labor, instead?
ReplyDeleteAlso, productivity is driven by manufacturing, which has largely moved offshore. The productivity of service jobs does not change much. I.e. a teacher can only teach so many students, a doctor can only treat so many patients, a bartender today can't serve more drinks than a bartender 100 years ago.