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'Productivity' is a measure of surplus to the business sector, it doesn't measure consumer surplus. Literally, the more we pay out of pocket for whatever good,
by jariel 6y ago
'Productivity' is a measure of surplus to the business sector, it doesn't measure consumer surplus.
Literally, the more we pay out of pocket for whatever good, the higher the productivity numbers.
Producers forced to compete and reduce prices ... productivity numbers go down because we measure the lower prices as implying lower value when that's not the case.