Question

Economic growth is defined as an increase in productivity per person employed. Discuss the ability of the US to increase productivity before and after the year 2000. What are the opposing characteristics of the kinds of employment and now does it affect the ability to increase (leverage) productivity? What must be done to improve productivity in the US? There is more than one cause. Use examples and explain how the changes will improve productivity.

Answer 1

The US has developed into a new economy based on the advancement made in communications and information technology in 1990's.This generated higher average productivity growth for many years.However it is difficult to infer long term productivity growth during later part of 2000's because of the recession of 2008 --2009 as a result of which there was fall in output and employment. Productivity growth was high in 2009-2010,but became slow after that.

Opposing characteristics of the kinds of employment are discrimination in workplace ,which affects productivity.When there is discrimination in workplace,the company suffers because morale of the employees falls and trust gets shattered.Employees lose self esteem and stop making innovative ideas.This also leads to frustration and anger of employees.Employees may be absent regularly and this may affect productivity.

Most of the Americans are stressed which is a cause of low productivity. So initiative should be taken to reduce stress.Employees need to be trained and upskilled. A trained workforce becomes efficient in what they do.Industry specific technologies can help in increasing productivity.For eg smart inventory control system can help in reducing inventories and cost of holding stock. Again e- purchasing system can open the field of suppliers and offer competitive price.Improving productivity is a continuous process and US should strive continuously to increase productivity.