Economic Productivity Is Looking Bleak

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From the Financial Times:

Productivity is set to fall in the US for the first time in more than three decades, raising the prospect of persistent wage stagnation and the risk of a further populist backlash. Research by the Conference Board, a US think-tank, also shows the rate of productivity growth sliding behind the feeble rates in other advanced economies, with gross domestic product per hour projected to drop by 0.2 per cent this year.

The San Francisco Fed tracks a different measure called utilization-adjusted total factor productivity, which they say is a better benchmark of technological improvements than old-school labor productivity. Here’s their current series:

These are 4-quarter growth rates, but the San Francisco Fed says that utilization-adjusted TFP has already gone negative on a pure quarterly basis: it was -2.66 percent in the last quarter of 2015 and -0.58 percent in the first quarter of 2016. So everyone agrees: no matter how you measure it, productivity growth is pretty weak these days. Is this because technological change has stagnated? Because low wages have prevented businesses from spending money on new labor-saving machinery? Because we’re not measuring the effect of the app economy properly?

Hard to say. Come back in a decade and I’ll tell you. In the meantime, it’s something to keep an eye on.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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