Total factor productivity around the globe seems to be slowing. This is a major problem.
Rising productivity is what fuels increased wealth and well-being - it is what allows poorer nations to catch up to richer nations ... a basic requirement of longer-term political stability.
In developed nations, it is what allows a falling population to afford the pensions of a growing retired class.
If TFP is falling, then - collectively - we are doing something wring .. or not doing something right.
One thing we do is to continually increase regulatory burdens - with the best of intentions, but resulting in smaller firms in particular finding it hard to navigate the bureaucratic minefield.
We also - especially when times are hard - often seem to forget to educate, train and develop the workforce ... increasing their capacity and capability.
Governments work in fits and starts on infrastructure - but often more on 'vanity' projects and 'note grabbers' rather than concentrating on productivity infrastructures.
We need to do more - more consistently.
Now, when I rule the world ...
Rising productivity is what fuels increased wealth and well-being - it is what allows poorer nations to catch up to richer nations ... a basic requirement of longer-term political stability.
In developed nations, it is what allows a falling population to afford the pensions of a growing retired class.
If TFP is falling, then - collectively - we are doing something wring .. or not doing something right.
One thing we do is to continually increase regulatory burdens - with the best of intentions, but resulting in smaller firms in particular finding it hard to navigate the bureaucratic minefield.
We also - especially when times are hard - often seem to forget to educate, train and develop the workforce ... increasing their capacity and capability.
Governments work in fits and starts on infrastructure - but often more on 'vanity' projects and 'note grabbers' rather than concentrating on productivity infrastructures.
We need to do more - more consistently.
Now, when I rule the world ...
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