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This is a worthy idea, but not it's not necessarily substantiated. FYI 'Productivity' is not 'How Hard We Work' - it's a measure of profit/hour. If profits go
by jollybean 5y ago
This is a worthy idea, but not it's not necessarily substantiated.
FYI 'Productivity' is not 'How Hard We Work' - it's a measure of profit/hour.
If profits go down for any reason, including more leverage by consumers due to increased competition, productivity will go down.
'Low Productivity' does not mean the economy is doing poorly.
One other theory, is that consumers have more power then ever, consumer surpluses are greater than ever (through lower prices) and that the money is not going into the companies and therefore not recorded as productivity.
Facebook, Google, Web Browsers, News, email. So much free content.
My favourite Video Game is free to play.
You can buy at Wallmart today what would have cost a lot of money in the 1960s.
Travel is cheaper than ever, more people are travelling, Airlines are always teetering on bankruptcy.
All of that means the productivity numbers are going to be lower than otherwise all things being equal.