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Goldman Sachs and J.P. Morgan Can’t Agree Why the Economy’s Productivity Has Slumped

Wall Street Journal Original article ›

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Goldman Sach economists say that technological improvements have increased productivity but this is not reflected in the statistics. Statistical measurement is an issue they say. Economists at JP Morgan Chase say the problem is that many of the technological improvements have not increased productivity in manufacturing, and there is a misallocation of resources to apps such as Uber and new products that do not increase productivity in the economy. Their view is that this is not a measurement issue, the drop in productivity makes sense and is very real. Compared to earlier shifts in technology this one has provided little in the way of serious improvement.

The drop in U.S. productivity from 2.9% for 1995 to 2005 to 1.3% since 2005, and 0.3% since 2010

05/15/2015

Alan Blinder, former vice chairman of the Fed discusses the alarming drop in productivity growth in the U.S. and what this means for maintaining living standards and growth in incomes. Britain is experiencing a lack of growth in productivity leading to declining real wages. China and other emerging markets are also experiencing weak productivity growth.

Grouped Articles

The Mystery of Declining Productivity Growth

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Goldman Sachs and J.P. Morgan Can’t Agree Why the Economy’s Productivity Has Slumped

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Grouped Articles

Sluggish Productivity Hampers Wage Gains

Wall Street Journal 03/07/2015

After a Bounce, Wage Growth Slumps to 0.1%

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The New Jobs Report Shows Janet Yellen’s Quandary in a Nutshell

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Grouped Articles

Sluggish Productivity Hampers Wage Gains

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After a Bounce, Wage Growth Slumps to 0.1%

New York Times 03/06/2015

The New Jobs Report Shows Janet Yellen’s Quandary in a Nutshell

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Slowing Job Growth Tests Economy

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Oil Layoffs Hit 100,000 and Counting

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U.S. Economic Growth Nearly Stalls Out

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