Michael Perelman wrote: > > A recession/depression also increases > > productivity.
Doug Henwood wrote: > 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. labor productivity (deliberately avoiding the bogus concept of "total factor productivity") is usually pro-cyclical because as demand and production increase, overhead labor is used more completely. However, a severe recession can lead to the sacking of most overhead labor, which can raise labor productivity. Also, these days -- after the thinning out of white collar jobs during the 1990s and the move to "leaner" production hierarchies -- the pro-cyclical effect is weakened. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
