The link between competitiveness, productivity and regulation gets special focus in this issue of the Economist. For those of you who are new to the reading the Economist, Schumpeter is a weekly column about markets. It is named after an economist, Joseph Schumpeter, who championed the "creative destruction" of markets.
Economist (2-18-2012) United States' economy Over-regulated America
Economist (2-18-2012) Schumpeter: This times it's serious
http://video.cnbc.com/gallery/?video=3000067504
In this interview (6 minutes), the Chief Economist for the Conference Board, Bart van Ark, explains how productivity is measured ( = real GDP/hours) and worrisome signs for the future. With real GDP growing slowly and hours finally increasing as more workers are hired, productivity growth is slowing. Productivity is pro-cyclical - it grows when real GDP grows.
Productivity in developed nations is still 4 times higher than in emerging nations. While productivity is growing faster in developing nation as they borrow technology, they still have along way to go to catch up.
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