Thursday, September 8, 2016

Productivity

http://www.npr.org/sections/alltechconsidered/2016/09/05/488686198/why-your-facebook-habit-at-work-makes-economists-worry


Listening to the podcast version of this story today made me wonder. 
It seems to me quite plausible that the factors behind the stagnation could include a disinclination of workers to do more when they no longer share in the rewards.

Productivity v Real Wages
Productivity growth in the last hundred years progressed at about 2.3% per year. This might not seem like a lot, but it means a doubling of production, which was matched by a doubling of standard of living, every generation. In the last 40 years we've seen a total break between productivity increases and real wage increases. In the last 10 years we've seen a stagnation of productivity.


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