We are making not just poor but negative progress with productivity growth. I think we shouldn't be surprised. This is what happens when we are rich and comfortable.
Costs go up but output doesn't. You measure and calculate the change and the productivity is negative.
Upping productivity is one of the most painful exercise in any organization to the point that compressing margins is more bearable. In other words, things will get worse before they get better, i.e., when the balance of pain shift towards putting in the hard work of raising productivity.
Existing productivity measures are often just seeking and plucking the low hanging fruit especially by investing in information technology. Most of such opportunities are already gone.
Some enterprises here are so spoilt, I think they would just roll over and die than stand and fight to survive, thrive.
with rentals and property costs us up there, eating into all aspects of daily living, it will be a wonder how we can ever get better especially from the widening rift between the rich and the poor. The slowing erosion of the middle class, as is evident in US, will only mean a destruction of the dignity of work and the value of savings.
ReplyDelete