4 ms·
No. the amount each person produces does not increase, certainly not because scientific advance. You see per capita productivity increase, where "productivity"
by crpatino 11y ago
No. the amount each person produces does not increase, certainly not because scientific advance.
You see per capita productivity increase, where "productivity" not necesarily means "producing more". If you can cut your production in one third and get away with doubling your prices (inelastic market), that couonts as productivity increase: you are producing more Profits with the same Capital investment. If on top of that you go and lay off 40% of your work force, you get the per capita part as well: You are running the same Productive Assets with less Labour.
That last is always a goal of Management, because of (19th century) reasons.