195. Productivity in the Recession and trends

August 3, 2009 § Leave a comment

From  te fed in cleveland

Gains in labor productivity (output per hour) come from three sources: increasing the amount of capital per worker (capital intensity); increasing workers’ average level of skill, education, and training (labor composition); and a residual (multifactor productivity) that picks up economy-wide gains in knowledge and organizational methods not captured by the previous two effects. Only annual estimates are available for the breakdown in labor productivity. The post-1995 resurgence in labor productivity has been spurred largely by capital intensity and multifactor productivity. However, the growth for 2007 to 2008 was fueled more by capital intensity and a bit less multifactor productivity.

via Productivity in the Recession and Going Forward :: Paul Bauer and Michael Shenk :: Economic Trends :: 07.30.09 :: Federal Reserve Bank of Cleveland .

But the problem is, there is another source of labor productivity – fewer workers. Outsourceing, declinign wages, moves to part time employees, firing older workerss for younger cheaper ones, all play a role.

What is striking about the general approach of economists is that they pay attention to input and output but not to socially who owns and who is broke. In a system wherethe wealthier are getting wealthier this kind of analysis hides the fact.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

What’s this?

You are currently reading 195. Productivity in the Recession and trends at Reflections on GardenWorld Politics Douglass Carmichael.

meta

%d bloggers like this: