Question

What factors contribute to the high level of productivity of the American worker?

Answer 1

Productivity is affected by the following factors:

1.) size of the capital stock: The size of capital stock such as machinery and heavy equipment is huge in the American economy due to a very developed infrastructure and manufacturing sector. this leads to increased productivity of American Workers.

2.) the quality of human capital: In comparison to any developing country, the working population of America is much more educated and the literacy rate is higher, this leads to better workers and Productivity is thus higher.

3.) factor mobility: The mobility of factors such as land labor and capital, plays an important role in Production. factors such as better infrastructure, better transportation facilities make the Movement of goods and labor efficient and faster. This leads to an increase in productivity

4.) technological advance: As we know very well that America is one of the most technologically advanced countries and this advanced technology is applied in every field from farming to manufacturing and also in the service sector. This leads to better workers and Productivity is thus higher.

5.) ability to outsource and trade: The factors such as good transportation networks and advanced Air and Naval Bases for shipping of goods help the American workers in increasing their productivity. Also, the use of dollars across the world as a standard trading currency makes it easier for American goods to be traded. This leads to higher productivity of American Workers as they can sell their output outside America very easily.