March 4, 2012

IT'S A QUESTION, NOT A PROBLEM:

Bye Bye American Pie: The Challenge of the Productivity Revolution (Robert Reich, MARCH 1, 2012)

Here's the good news. The economic pie is growing again. Growth in the 4th quarter last year hit 3 percent on an annualized rate. That's respectable - although still way too slow to get us back on track given how far we plunged.

Here's the bad news. The share of that growth going to American workers is at a record low.

That's largely because far fewer Americans are working. Although the nation is now producing more goods and services than it did before the slump began in 2007, we're doing it with six million fewer people.

To call creating more wealth with less work a problem would earn you a deserved punch in the nose from any prior generation.  We face a question about how to distribute that new wealth fairly across society.  It's an awfully nice "problem" to have.

Posted by at March 4, 2012 6:05 AM
  

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