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Originally Posted by Phillyfanfrombirth
No takers on the NFL?
How about Fed Chairman Bernanke's speech?
Very informative stuff... productivity is the golden goose of economics and living standards....
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Yes, it is.
While I don't pretend to be an expert on economics I can agree with Ben Bernanke's comments that tie 'technology' (mostly, the heavy use of computers and computerized machines) to increased productivity growth in the U.S. That's a no-brainer.
Maybe I missed it but he apparently left out the fact that as corporations and even some smaller businesses shrink their workforces through natural attritrion, mergers and lay-offs there are less people doing more work in some instances. That naturally leads to increased 'productivity'. If history is a guide, the newly raised minimum wage, when it kicks in, will probably shrink the lower paid end of the workforce a bit (although, some low-end employees receiving the new minimum wage will be promoted to more responsible positions to justify their mandated increased pay) and further increase productivity as employers will let some minimum wage employees go.Then, fewer workers will be required to do more work for a tiny (if any) raise in pay. However, a higher federal minimum wage usually doesn't have
that great of an impact, overall. Many states have mandated minimum wages
higher that the federal minimum so this is a moot point for workers in those states. The big-name employers usually pay better than the federal minimum wage, anyway. Even Wal-Mart, that punching bag of the anti-capitalists, supposedly pays it's sales clerks about $8.50 per hour. In a store famous for low prices and scant 'service', how productive are
they? Productive enough to be worth over $17,000. (pre-tax) dollars a year to Wal-mart. A business (Big Box retail) that is not known for its high pay - or efficient employees. Productivity is often relative. If employers can keep productivity at current levels and better, even if it involves some spending on newer technology, that's fine. If they have to cut workers
and raise prices, negatively affectiing all of us, that's not good.