Productivity. That's an all-important yardstick for measuring the value of goods and services workers can produce in any given time period. And growth in productivity is key in raising income and living standards. But, in the US, productivity growth has flagged in recent years. And that has economists worried. A recent study by consulting group McKinsey gives reason not to worry -- but only if the government supports policies that bolster consumer demand.
Here's the big issue: growth in the US economy has been sluggish since the end of the Great Financial Crisis. There have been spikes of growth. But invariably, the economy downshifted again. And the level of growth has been lower than in previous expansions.
In fact, there hasn't been a single calendar year in ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.