Where to get productivity?

Where to get productivity?

Economics Without The B.S.**: 

[**  Double entendre intended.]

Total Factor Productivity is a measure of our productivity due to innovation -- tech innovation, improved management processes, investment improvements other than in plant equipment, an educated workforce, etc.

Note from the 1950s to the mid-1960s (I would consider the mid-1960s peak performance for that economy) as a good run up; then from the early 1980s to about 2004 another good run up. After 2004 it has been positive but lackluster.

Also note that Labor Productivity coincides with overall productilvity. Lower rates of GDP productivity, lower rates of labor productivity, lower rates of total factor productivity.

This is one of the things we have to improve to raise our productivity -- tech innovation, improved management processes, educated workforce -- along with a greater emphasis on technical aspects of a service-based economy.

Raising our productivity reduces the debt burden we have built up, and helps to finance the social-welfare function of government, as well as the other benefits that come with a more productive society.

For the Three Rs -- this is the [New] Recovery and the Reform that is needed.