Myths about productivity?

An interesting set of views and counter claims about productivity are presented below – they 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 reverse is true – the staff that remain also have to do the work of those laid off, and for the same pay

  • It stifles competition – the UK, for instance, needs large capex to set up new productivity competitive businesses – China doesn’t, and uses 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

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