Value of Productivity Gains

Economic changes occur without public knowledge or publicity, but they affect the affairs of all of us. The public ought to get basic economics education from the media, so that they may more readily absorb information that has so much to do with everyday life.

One example: Positive changes in output per hour by industry often is considered to be good during economic recessions; it helps recovery. Companies cut staff to do this to keep labor costs low.

It is painful, of course. Lost jobs produce the favorable statistic. However, that is true only in private industry. The public sector, particularly those unionized, are being added to, with the aid of past federal stimulus funds. And they are budget-busting, absolutely non-productive. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)