Nice piece in today’s WSJ … here are snippets:
Punch line: Productivity — the ultimate engine of growth and better living standards — always swims upstream against those that fight it. Unions, regulations and a bizarre tax code lock in the status quo.
But, doesn’t productivity — getting more output with less inputs — destroy jobs?
Sure, but it creates way more than it destroys by creating technological avenues and lowering the cost of business
So how does productivity result in more employment?
Some new technology comes along that allows something never before possible. Cash from an ATM, stock trading from an airplane’s aisle seat, ads next to Google search results.
Cheaper technology becomes a platform for others to create or expand businesses that never before made economic sense. Think, eBay and Amazon.
Productivity attracts capital to satisfy new consumer demands. In a competitive economy, productivity—doing more with less—always lowers the cost of products or services:
And, private investment does a better job of allocating capital than any elite economist or politician picking pork-barrel projects and relabeling them as “investments.”
Entire WSJ article is worth reading