Gross Domestic Product numbers and incomes are down, both mirroring poor American productivity growth, declining now for two decades. Yet, though the numbers don’t lie, how to read them remains intriguing.
It’s true that arguably, productivity can be seen as child to innovation, bolstered by management techniques and a willing and adequate supply of workers. By this view, productivity chart numbers could be forgiven for revealing a somewhat staccato pattern, as neither innovations, great workers, or superlative managers come around in regular, foreseeable increments.
Newer thinking, however, asserts productivity might be viewed as less an effector of economy than as an aspect intrinsically tied to it. What if evidence of a lack of available jobs, quenching the demand for the very goods and services productivity is responsible for, is at the true root of perceived poor productivity? It’s a chicken first, or egg first, question. And likely to engender debate for a long time.
- Critics are taking another look at American businesses lately. They think these businesses aren’t increasing worker productivity.
- Worker productivity increased by 0.8% on recent news. That is the lowest growth rate in years as per the industry.
- That trend could have its own implications across the economy. People will note slower GDP growth and bad economic news.
“Instead of worrying so much about robots taking away jobs, maybe we should worry more about wages being too low for the robots to even get the chance.”