The Economic "Disease" Eating away at the U.S.
At MoneyWatch (they choose the titles, not me):
The economic "disease" eating away at the U.S.: It's no secret that productivity -- an essential driver for economic growth -- has weakened in recent years in the U.S. and around the world. Less evident is what, if anything, can be done about it.
"Productivity isn't everything, but in the long run it is almost everything," Nobel Laureate economist Paul Krugman wrote in "The Age of Diminishing Expectations." "A country's ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker." ...
Recent data suggest that pattern is likely to continue for some time.
Over the first three months of the year, productivity increased 0.6 percent. That's below the 1.1 percent rate of growth since the end of the recession, and far below the 2.3 percent average rate of growth from 1990 to the onset of the Great Recession.
What does seem to be a secret is how to fix the problem... What can be done to boost productivity? ...
Posted by Mark Thoma on Monday, May 9, 2016 at 07:08 AM in Economics, MoneyWatch, Productivity |
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