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February 18, 2011

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Unfortunately for this effort, productivity is directly tied to unemployment. As I have shown here: http://www.demandsideeconomics.net/2009/08/multifactor-productivity-explained.html

virtually all productivity gains up to 2007 can be correlated directly to low unemployment. Managers are motivated to utilize labor as efficiently as possible when unemployment is low.

It also seems to me that the growth fetishism is misplaced in a world rapidly coming to its environmental brink. That growth will slow does not seem to me to be a bad thing.

Thanks for sharing!

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