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View Diary: Don't think class war from above is real? Check out productivity and wage growth since 1973 (99 comments)

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  •  How is Productivity as shown in this graph (1+ / 0-)
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    WillR

    calculated? I'm wondering to what extent labor contributed to this measure as compared to investment in capital equipment. Is it even possible to isolate the contribution made by labor in these kinds of calculations.

    The only trouble with retirement is...I never get a day off!

    by Mr Robert on Thu Mar 07, 2013 at 03:56:34 PM PST

    •  It's basically output per worker per hour (1+ / 0-)
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      Mr Robert

      So... a simple example. Let's say you have a factory that makes automobiles. In June, 500 workers made 500 cars. In July, the same 500 workers made 550 cars (July is one day longer, but let's say they got the 4th of July off). Productivity per worker went up 10%.

      There are all sorts of reasons why productivity might have gone up. Maybe it's a new air conditioning system, so workers are more comfortable. Maybe a new welding machine. Maybe you fired some middle managers and hired more line workers. Maybe you solved problems with getting suppliers to deliver materials on time. Sometimes workers just get more work done because they're experienced. Or they figure out a way to do something more efficiently.

      "Stupid just can't keep its mouth shut." -- SweetAuntFanny's grandmother.

      by Dbug on Thu Mar 07, 2013 at 07:41:36 PM PST

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