The increase in productivity will not occur immediately and it will take a stronger recession to scare business widely enough.
On Mon, Sep 24, 2007 at 08:25:26PM -0400, Doug Henwood wrote: > On Sep 24, 2007, at 8:04 PM, Michael Perelman wrote: > > > A recession/depression also increases > > productivity. > > Not necessarily. The accepted wisdom is that productivity is > procyclical. It was widely seen as unusual that U.S. productivity > stayed strong through the 2001 recession and the weak 2002-3 recovery. > > Doug -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
