> Productivity Expands at a Faster Pace > > By MARTIN CRUTSINGER > The Associated Press > Tuesday, December 6, 2005; 8:44 AM > > WASHINGTON -- The productivity of American workers shot up at the > fastest pace in two years during the July-September quarter, helping > to ease fears that inflation pressures were threatening to get out of > hand.
steep rises of labor productivity are usually a cyclical phenomenon, due to more complete use of overhead labor as demand increases. They happen toward the end of the cyclical expansion. To conclude that we should fear inflation less, it should be an uptick in the long-term trend growth of labor productivity. > The Labor Department reported Tuesday that productivity, the key > component for rising living standards ... again, it should be the trend rate that we look at. Even then, wages have been falling behind productivity growth of late, so it's hard to say anything about the majority's living standards. Rising productivity has mostly been helping profits of late... > The big jump in worker efficiency help to push labor costs down ... "Efficiency" must be the most misused word in economics, specifically here. -- Jim Devine "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
