Myths about productivity?

An interesting set of views and counter claims about productivity were found on Google:

  • It leads to higher wages:

    • It doesn’t

    • It needs collective bargaining, but unions have mostly lost their influence

  • It doesn’t result in fewer jobs:

    • In an ideal world, it would lead to increased output, increased market share and even increased number of jobs

    • It rarely works out that way

    • Most improvements are justified by labour-saving which is much easier and faster than penetrating new markets

  • It leads to better quality jobs:

    • The opposite is true

    • The staff that remain have to do the work of those laid off, and for the same pay

  • It stifles competition:

    • The UK, for instance, needs large capital expenditure to set up new productivity-competitive businesses

    • China does not, able to use cheap labour instead

  • It stifles innovation:

    • Retooling production lines can be very expensive

  • It freezes capital:

    • Capital which could be used for vital infrastructure say

You might ask which side of the fence you’re on with each claim

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