2 ms·
Productivity can still be measured in service, although in certain cases abstractly, but for example a barber is a service worker with pretty measurable product
by opportune 9y ago
Productivity can still be measured in service, although in certain cases abstractly, but for example a barber is a service worker with pretty measurable productivity. I think inflation can still occur within the classical model wrt the service sector. An example being that a restaurant has trouble keeping dishwasher positions filled, incentivizing them to increase dishwasher wages, requiring higher menu prices to compensate.
As long as the US continues to maintain a comparative advantage in certain industries (e.g. software) I see no reason why they will be immune to wage inflation either. In fact this is arguably already occurring