>>By productivity do you mean increases in output?<<
yes, of dollars, though, and not necessarily units. very often, units and dollars are positively correlated, but not always.
again, using micron and all dram mfrs as an example, they drastically increase unit productivity so much so fast that they actually DRIVE DOWN REVENUES due to the supply / demand imbalance they create.
that means more workers create fewer dollars even though they ship more product. this reduces gdp, all else being equal, and, since productivity is based on gdp, it also means productivity would fall, all else being equal.
yes, you can double and triple output and reduce gdp and economic productivity. the dram companies do it all the time.
gdp has now been bastardized so much it is hard to know what it is now. |
