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Politics : BS Bernanke (Ben Shalom Bernanke), 14th Fed Chairman -- Ignore unavailable to you. Want to Upgrade?

To: Paul Chiu who wrote (11)	9/4/2006 2:34:20 PM
From: Julius Wong	Respond to of 23

September 1, 2006 Bernanke is bullish on gains in productivity By Jeannine Aversa Associated Press WASHINGTON -- America's productivity probably will keep growing solidly for some time, an important force in bolstering living standards, said Federal Reserve Chairman Ben Bernanke on Thursday. POSITIVE: Fed Chairman Ben Bernanke said companies have yet to reap all benefits of investments in productivity-enhancing technology. - BRIAN KERSEY / Associated Press Although productivity gains can be difficult for economists to forecast, Bernanke offered a largely optimistic case that the country will continue to log good efficiency gains over the long term. He said recent figures showing a short-term slowing in productivity didn't change his view. "A case can be made that the strong productivity growth of the post-1995 era is likely to continue for some time," Bernanke told an economic and development conference in Greenville, S.C. A copy of his remarks was made available in Washington. Since 1995, productivity has been growing at a significantly faster rate than it had in the previous two decades, when efficiency gains had been sluggish. From 1995 to 2000, productivity growth was about 2 1/2 percent a year, Bernanke noted. In contrast, from the early 1970s until about 1995, productivity growth averaged about 1 1/2 percent a year, he said. Big investments in computers and other productivity-enhancing equipment have played a role in the productivity improvements. Companies have yet to reap all the benefits of their previous investments in such productivity-enhancing technology, Bernanke said. That's part of the reason why he is mostly bullish about future gains. Productivity -- the amount an employee produces for every hour on the job -- is a key ingredient to the economy's long-term vitality. Efficiency gains can help blunt inflation. Companies can pay workers more without boosting prices, which would eat into those wage gains. indystar.com