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Politics : Ask Michael Burke
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To: SeaViewer who wrote (65432)7/28/1999 3:56:00 PM
From: Mike M2  Read Replies (2) of 132070
 
More questions about productivity numbers from Newsweek: " Some economists doubt a huge productivity rebound. Mark Zandi of
Regional Financial Associates attributes almost half the recent gain to two
statistical quirks. One involves improvements in the consumer price index.
These changes reduce reported inflation and automatically raise "real"
output and productivity. The other quirk, says Zandi, is an overestimate of
the productivity of the self-employed, about 6.5 percent of the
non-farm-labor force. Stripped of these influences, Zandi thinks that
productivity is now rising about 1.5 percent annually, up from 1 percent.
Much of the gain, he says, comes from an older, more experienced work
force. "

newsweek.com:80/nw-srv/printed/int/wb/ovsa0105_1.htm
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