Three components go into the labor productivity--investment capital, new technologies and human capital. Growth in the labor productivity number can be equated with improved standards of living in the country.
If labor productivity may indeed be interpreted as a measurement of the standard of living in a country, then given five out of the past six years the United States has reported negative labor productivity numbers...does it not stand to reason that America's standard of living is in a state of decline?
And sharply so. The past four consecutive years have reported negative labor productivity. Worse, this negative labor productivity is coupled with what is reported (from a University of Virginia study) as an "American phenomenon". They do not know the cause, but America's work force mortality rate is higher than ANY other first world economy, and the trend continues. Total it up, and that is economic mismanagement pure and simple.
Even if using a "multi factor productivity," the duopoly's management of the American economy amounts to consuming its own young...to economic cannibalism and generational theft. The Bureau of Labor Statistics table shows as much.
Labor's share as a production factor has sharply declined (almost 22%). While the materials component has increased (almost 18%). This increase in the material component has nothing to do with inflation. It can only mean one thing.
Namely, American manufacturing is being "outsourced". It is indisputable, we have an economy addicted to imports...and that is unhealthy on a couple levels it seems. Forty years of massive foreign trade deficits prove the point.
Outsourcing is defined as a shift from labor (used for in-house produced goods) to purchased materials and services. What the multinational conglomerates claim non-stop about the benefits of "outsourcing" is not withstanding. It is in fact a form of economic cannibalism.
Why? Because shifting production processes toward greater use of intermediate purchases (overseas) comes at the (domestic) expense of INNOVATION!!! America's economy under its current multinational model forced upon it by unprincipled politicians who act as little more than an escort service for globalists, is therefore eating its own young. The effect is to manage against domestic innovation. No People can sustain that.
CP-Idaho has long called for initiatives to improve productivity.
- Incentivize capital investments in small town economies by using units of production (rather than time) to accelerate depreciation.(Geographically dispersed production also benefits national security.)
- Open up lifetime learning and education opportunities, particularly through community and vocational colleges to continue to upgrade the knowledge, skills and abilities of our American work force (In other words, invest in human capital.)
- And by all means necessary, open up the latent power of American creativity and technological advancements.(Develop our domestic REE deposits.)
The color of the duopoly team in the White House (whether red or blue) has made no difference whatsoever. They have both stripped wealth out of the working class. And both are culpable for creating the conditions in which the pace of our labor force mortality is shamefully increasing. They are killing you softly, perhaps. But killing you nevertheless.