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Growth in productivity is driven by technology, not quality of labor.
by AmericanChopper 4y ago
Growth in productivity is driven by technology, not quality of labor.
- ericjmorey 4y agoProductivity of what?
- AmericanChopper 4y agoThe productivity of labor. Which is simply revenue per hour of labor. When people talk about the increase in worker productivity, that measurement is simply GDP divided by number of hours worked in the economy. That number has gone up recently, and many people who don’t know what productivity is actually measuring like to comment on the fact that the increase is productivity hasn’t been met with an increase in wages. But that increase has been driven by technology, and the people who are responsible for that increase in productivity capture the value. The people who sell the technology, not the people who sell the labor.
- rurp 4y agoSkilled labor isn't more productive than unskilled?
- AmericanChopper 4y agoSkilled labor isn’t new, and it’s not what’s driven the increase in productivity. I can implement useful computer programs today far faster than Dennis Ritchie could in the 70s, even though he’s far more skilled than I am. That difference in productivity is entirely due to advancements in technology.
- recursivedoubts 4y agoTrue in general, but you'll be surprised how quickly things can fall apart when labor stops laboring.