Wednesday, August 10, 2016
86. Declining US Producitiy
There are two variables that may affect this ratio: 1. The number of hours worked in the economy has been declining as the % of workforce participation decreased. Year-to-year changes in labor productivity shown here would not be affected. 2. The average cost per labor hour would change as wages increase or decrease. Again, that would not alter the slope of the productivity line.
CONCLUSIONS: These charts show that the economic viability of the US has been deteriorating. Productivity changes of less than 1% cannot support GNP growth of substantially more than 1%.