Productivity.

For years we’ve heard the glories of productivity. It’s wonderful, we’re producing more widgets with less human input. But comrades, we can do even better!! For the glory of the economy do your best!

It’s easy to increase productivity in a labor market where workers are fearful of losing their jobs (think heath insurance). Let’s say we have 100 people producing 1,000 widgets per week. Simply fire 10 of them and imply (or threaten) you’re ready to fire more. But of course the goal, 1,000 widgets per week, remains the same for the 90 remaining comrades. Wow, you’ve suddenly increased productivity by 11.1%, it’s magic!

In strictly monetary terms, dollars out for dollars in, you can accomplish exactly the same thing by cutting wages. Keep on employing the full 100 people but cut their wages. The more you cut wages while demanding the workers meet the original production goal the higher the productivity climbs.

So when you hear the “good news” about rising productivity think twice about what this really means.

Posted at July 11, 2007 10:11 PM in response to The Ten Boxes of Heterodoxy, or Why Economics Sucks

True, that event where Cheney "bagged" 70 pheasants was a canned "hunt" a couple years ago.

 
A woman just called into the Jerry Springer show and she put it best.

 
"That's not hunting, that's bird blasting."

Posted at February 14, 2006 7:54 AM in response to VP Cheney, You're Lucky Those Reporters Aren't Hunters