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This isn’t just about productivity of labor, it’s about productivity in terms of end result. That kind of or productivity is deflationary, not inflationary. Eg
by nilsbunger 4y ago
This isn’t just about productivity of labor, it’s about productivity in terms of end result. That kind of or productivity is deflationary, not inflationary.
Eg a TV costs 10% of what it did 20 years ago. Fewer person-hours of work are involved in making one TV. Less of the average home budget goes to TVs than it used to, even while people are buying better tvs.
That’s a massive productivity increase in the lingo of economics.
You could replace TV with solar panels, cars, computers, etc. Less human involvement per good produced => productivity increase.
- beefield 4y agoSo because one set of chinese are able to make bunch of counterfeit casio watches way cheaper than another set of chinese can make apple watches, the first one are more productive because both make watches that show time? Maybe there is a reason why another watch or another nursing service or another tv (at another time) is more expensive? Maybe the reason is that in the more expensive case they produce more value i.e are more productive? By the way, just started wondering why nobody is worried about the atrocious productivity development of CEOs over the last decades? Should shareholders maybe hire some consultants to advice the CEOs how they could make their work more efficiently that they could become cheaper?
- deleted 4y ago[deleted]