Productivity is the wrong thing to measure

Productivity is the wrong thing to measure

Nipawin - December 30, 2000 - by:Mario deSantis

New
Economy
We live in an environment where there is a lot of confusion, and this confusion is being made

more confusing by an obsolete leadership unwilling to make personal transformational changes

and unwilling to give power away. As I have already mentioned in a previous article, our

leadership is continuing to use a manufactured language which divides people rather than

unites them⁽¹⁾. And this manufactured language is used in our educational institutions, in

politics, in business, in our communities, and in our families. We are today living in a rapidly

changing world which has been characterized by the so called New Economy, and yet we

describe this New Economy in terms of our old manufactured economic language. As I was

saying , our social state of confusion is getting more confusing.

imagination
at work
What has caught my attention lately has been the social misunderstanding of the economic

term "productivity." I really loved my figuratively definition of productivity as "the work of

our imagination at work⁽²⁾" as contrasted to the traditional definition which equates

productivity to per capita GDP (Gross Domestic Product).

technological advances
We are living in a changing economic environment where products and services keep

changing in accordance to our technological advances and new ideas, and yet our

economists are still putting their emphasis of economic growth on "productivity." In the

United States, we have progressive economists Robert Atkinson and Randolph Court,

who have confirmed that in the New Economy we are experiencing both a growth of high

and low skilled jobs⁽³⁾.

Lagging productivity
These economists say "Low-skilled jobs are not going away any time soon. The

occupations with the largest predicted numerical increases are cashiers, janitors, retail

salespersons, waiters, and waitresses. Together, they are expected to account for thirteen

percent of all new job growth." Atkinson and Court continue to say "Lagging productivity

goes a long way towards explaining slow wage growth. If productivity had increased after

1973 the way it did in the thirty years before, half of all American households would now be

earning at least $63,000, instead of the current $37,000"

doesn't
make
sense
In one way, and indirectly, Atkinson and Court are telling us that in the New Economy, the

traditional economic measure of "productivity" doesn't make sense. Productivity, as per capita

GDP, doesn't make sense because goods and services keep constantly changing, and because

in this stage of the New Economy both high and low skilled jobs are increasing. However, our

journalist Bruce Little of the Globe and Mail says "productivity is important because it's the

foundation of prosperity and a rising standard of living⁽⁴⁾", and this statement characterizes

the demented mind set of our traditional economists and leadership.

the
wrong
jobs
Let me reinforce the understanding that productivity is an obsolete economic term and that

it should not be part of our economic vocabulary. Productivity, as per capita GDP, is a

manufactured economic term of the assembly line economy, and it has no meaning in the

New Economy. And very perceptively, Kevin Kelly has stated that "the problem with trying

to measure productivity is that it measures only how well people can do the wrong jobs. Any

job that can be measured for productivity probably should be eliminated⁽⁵⁾."

-----------References/endnotes:

List of relevant political and economics articles http://www.ftlcomm.com/ensign

1.
Money Talks, Mandatory Voting and our Democracy, by Mario deSantis, December 23, 2000

2.
-
What is productivity? It is the work of our imagination at work, by Mario deSantis, September 5, 2000

3.
-
-
The New Economy Index, by Dr. Robert Atkinson and Randolph Court. Dr. Robert Atkinson is the director of the Progressive Policy Institute's project on Technology, Innovation, and the New Economy. Randolph Court is the technology policy analyst at the Progressive Policy Institute

4.
-
Too early to tell if our productivity will match U.S. boom, Bruce Little, The Globe and Mail, Monday, September 4, 2000

5.
-
-
New Rules for the New Economy. Twelve dependable principles for thriving in a turbulent world. By Kevin Kelly, Executive Editor, Wired Magazine Group Inc., F E A T U R E S | Issue 5.09 - September 1997

Productivity is the wrong thing to measure

Nipawin - December 30, 2000 - by:Mario deSantis

New Economy	We live in an environment where there is a lot of confusion, and this confusion is being made
	more confusing by an obsolete leadership unwilling to make personal transformational changes
	and unwilling to give power away. As I have already mentioned in a previous article, our
	leadership is continuing to use a manufactured language which divides people rather than
	unites them⁽¹⁾. And this manufactured language is used in our educational institutions, in
	politics, in business, in our communities, and in our families. We are today living in a rapidly
	changing world which has been characterized by the so called New Economy, and yet we
	describe this New Economy in terms of our old manufactured economic language. As I was
	saying , our social state of confusion is getting more confusing.

imagination at work	What has caught my attention lately has been the social misunderstanding of the economic
	term "productivity." I really loved my figuratively definition of productivity as "the work of
	our imagination at work⁽²⁾" as contrasted to the traditional definition which equates
	productivity to per capita GDP (Gross Domestic Product).

technological advances	We are living in a changing economic environment where products and services keep
	changing in accordance to our technological advances and new ideas, and yet our
	economists are still putting their emphasis of economic growth on "productivity." In the
	United States, we have progressive economists Robert Atkinson and Randolph Court,
	who have confirmed that in the New Economy we are experiencing both a growth of high
	and low skilled jobs⁽³⁾.

*Lagging productivity*	These economists say "Low-skilled jobs are not going away any time soon. The
	occupations with the largest predicted numerical increases are cashiers, janitors, retail
	salespersons, waiters, and waitresses. Together, they are expected to account for thirteen
	percent of all new job growth." Atkinson and Court continue to say "Lagging productivity
	goes a long way towards explaining slow wage growth. If productivity had increased after
	1973 the way it did in the thirty years before, half of all American households would now be
	earning at least $63,000, instead of the current $37,000"

doesn't make sense	In one way, and indirectly, Atkinson and Court are telling us that in the New Economy, the
	traditional economic measure of "productivity" doesn't make sense. Productivity, as per capita
	GDP, doesn't make sense because goods and services keep constantly changing, and because
	in this stage of the New Economy both high and low skilled jobs are increasing. However, our
	journalist Bruce Little of the Globe and Mail says "productivity is important because it's the
	foundation of prosperity and a rising standard of living⁽⁴⁾", and this statement characterizes
	the demented mind set of our traditional economists and leadership.

the wrong jobs	Let me reinforce the understanding that productivity is an obsolete economic term and that
	it should not be part of our economic vocabulary. Productivity, as per capita GDP, is a
	manufactured economic term of the assembly line economy, and it has no meaning in the
	New Economy. And very perceptively, Kevin Kelly has stated that "the problem with trying
	to measure productivity is that it measures only how well people can do the wrong jobs. Any
	job that can be measured for productivity probably should be eliminated⁽⁵⁾."

-----------References/endnotes:

	List of relevant political and economics articles http://www.ftlcomm.com/ensign

1.	Money Talks, Mandatory Voting and our Democracy, by Mario deSantis, December 23, 2000

2. -	What is productivity? It is the work of our imagination at work, by Mario deSantis, September 5, 2000

3. - -	The New Economy Index, by Dr. Robert Atkinson and Randolph Court. Dr. Robert Atkinson is the director of the Progressive Policy Institute's project on Technology, Innovation, and the New Economy. Randolph Court is the technology policy analyst at the Progressive Policy Institute

4. -	Too early to tell if our productivity will match U.S. boom, Bruce Little, The Globe and Mail, Monday, September 4, 2000

5. - -	New Rules for the New Economy. Twelve dependable principles for thriving in a turbulent world. By Kevin Kelly, Executive Editor, Wired Magazine Group Inc., F E A T U R E S \| Issue 5.09 - September 1997