Scatablog

The Aeration Zone: A liberal breath of fresh air

Contributors (otherwise known as "The Aerheads"):

Walldon in New Jersey ---- Marketingace in Pennsylvania ---- Simoneyezd in Ontario
ChiTom in Illinois -- KISSweb in Illinois -- HoundDog in Kansas City -- The Binger in Ohio

About us:

e-mail us at: Scatablog@Yahoo.com

Monday, April 17, 2006

What the heck is "productivity" today, anyway?

A question for the economists. Walldon has a post earlier today about Canada’s interpretation of its productivity ranking. This raises a persistent question I’ve had for some time: what does the concept of productivity really mean in an economy that’s mostly services? If a huge accounting or law firm can add an extra professional body to a problem, and get away with charging the deep-pockets client for the additional hours – which it usually can -- has not “productivity” as measured in national economic statistics been increased accordingly? When you are talking production of goods, productivity seems closely correlated with efficiency: one person making more widgets. With services, might it not be just the opposite – or, at least, isn’t the connection broken between those concepts, such that improved measured productivity may or may not mean improved efficiency?

1 Comments:

Blogger walldon said...

Good point!

7:56 PM  

Post a Comment

<< Home