Comments on: Unemployment up, productivity up

By: Draco T Bastard

Draco T Bastard — Mon, 09 Nov 2009 01:33:35 +0000

If all things stay the same then if productivity goes up, wages must fall. This is because the market has stayed the same and so the same number of units will be sold but those units can be made with less labour. This is why we keep going for an export led recovery because there happens to be huge markets out there that we can export to – until they can make their own at least.

By: Don Spunik

Don Spunik — Sun, 08 Nov 2009 22:11:06 +0000

Unemployment up, productivity up at The Standard http://tinyurl.com/yz7fg6l

By: uberVU - social comments

uberVU - social comments — Sun, 08 Nov 2009 21:49:36 +0000

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By: Sara Ryan

Sara Ryan — Sun, 08 Nov 2009 21:47:15 +0000

Unemployment up, productivity up at The Standard http://bit.ly/14FAuI

By: Zaphod Beeblebrox

Zaphod Beeblebrox — Sun, 08 Nov 2009 21:05:16 +0000

Also add that a lot of unprofitable businesses simply cease to exist. You could argue whether thats good or bad- hopefully the remaining businesses will be more productive just not larger.

By: So Bored

So Bored — Sun, 08 Nov 2009 21:04:03 +0000

This all goes to show what a crock of proverbial the conventional wisdom of economics and associated terms are. Its not a dreary science at all, its more a case of much quoted sacred cows that disguise reality. High priests like Don examining chicken entrails and declaring thereon. What the two faced denizens of Treasury etc wont ever say is what they really mean in human terms, things like lower wages, worse working conditions, who gets the cash etc.

By: tsmithfield

tsmithfield — Sun, 08 Nov 2009 20:58:42 +0000

For this reason the rate of uptake in employment will be a lot slower than the decline. This is because businesses essentially purge themselves of unproductive jobs and will focus on efficient allocation of resources when it comes to rehiring again as the economy improves.

By: Pascal's bookie

Pascal's bookie — Sun, 08 Nov 2009 20:53:28 +0000

I’ve been led to believe that when productivity goes up, wages follow.

Except when they don’t, because when productivity is going up, wages are purely a function of supply and demand and have nothing to do with productivity any more.

By: Wayne Strnad

Wayne Strnad — Sun, 08 Nov 2009 09:44:07 +0000

Unemployment up, productivity up at The Standard http://bit.ly/3ssAcO