Posted on 09/28/2022 4:35:23 PM PDT by BfloGuy
But we have another more permanent inflation problem. It was first described in a famous article by economist William Baumol in the American Economic Review in 1967. Baumol noted that productivity, measured as the amount of “stuff” that could be produced per worker in a given time, varies across sectors. In those that produce physical output — whether cars, wheat, toilet seats or whatever — productivity has risen consistently, driven by technical innovations and the increasing use of machines in production. In contrast, in services such as producing educated students, staging arts performances and designing government policies, productivity growth has been much less — or even non-existent: “A half hour horn quintet,” as Baumol wrote, “calls for the expenditure of 2 ½ man-hours in its performance, and any attempt to increase productivity here is likely to be viewed with concern by critics and audience alike.”
(Excerpt) Read more at financialpost.com ...
Impossible to avoid inflation when federals have no requirement to balance budgets. To be able to spend unlimited amounts of other people’s money is more addictive than heroin.
A barber probably takes as long to cut a man’s hair now as it took in Roman times.
Oh, come on. The invention of electric clippers greatly sped up the process.
2022 annual productivity rate in at -6% (8/2/22)
There are too many Capturing Value” rather than “Creating Value”.
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