Productivity Is Bad: The Economy Follows
Econintersect LLC | Dec 23, 2012 01:31AM ET
Pundits seem to comment on elements outside their comfort zone (areas of real expertise). Everyone is guilty from time-to-time. I know my comfort zones, and one is in labor and labor dynamics which formerly was the major part of my last life.
My least read analysis are ones on productivity – a particularly boring subject which most understand is important to profitability and competitiveness. Some believe it is a major building block of GDP. (The way productivity is calculated by the economists – it uses GDP components.) Following economic updates on productivity are the equivalent of being forced to watch snail racing on ESPN.
Here is the way the bean-counters and economists view productivity.
Productivity in the above graph is calculated by dividing real output by hours worked. If a component was outsourced, this would be considered a productivity improvement. Click here to view the scorecard table below with active hyperlinks
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