Eubulides wrote:
In the past two decades, "manufacturing productivity grew at double the
ace of overall productivity growth. . . . This increase in productivity
has enabled the economy to grow faster without inflation and has been
passed through to workers in the form of higher [inflation-adjusted]
wages," says a report published by the Manufacturing Institute, an arm of
the NAM.
I read a recent report on Canada that said its upsurge in productivity
was almost entirely the result of a shutdown (and job export) of labour
intensive, low productivity firms rather than any improvement in average
productivity. i.e. the average productivity rose because of the
elimination of low productivity firms while higher productivity firms
had relatively stagnant productivity. To what extent is this true of
the US?
Paul Phillips,
Economics,
University of Manitoba
