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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
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Misconceptions About Productivity

31 July 2015 | Pago Pago, American Samoa
Kimball Corson
Many are in a tither about what is seen as stalled productivity growth. Labor productivity growth is only inching forward. Several theories are pro-offered for this stall (which is mistakenly said to imply robots are not making great inroads against human labor.) It is the perhaps list: Perhaps the rate of technological progress has slowed. Perhaps corporations aren't investing enough in productivity-enhancing capital goods. Perhaps technological knowledge hasn't slowed, but it's just not diffusing properly throughout the economy. Or Perhaps higher productivity requires us to be nearer full employment with a tight labor market.

All or some combination of these might be valid explanation but the leap from stalled labor productivity to the contention robots are not making a significant incursion again human labor is a non sequitur and wrong. Robot are displacing people and some items on the perhaps list, except the last on, might explain why it is not happening more quickly. However we do know robots are displacing human workers. Why?

Because hours worked and the percentage of the working age population are falling and GDP is rising. Other evidence is capital's share of national income is rising and there are many instances we know of where machines are displacing workers. But the confusion remains on why stalled labor productivity growth is not an indication roboticization has stalled out and many conclude?

Consider two factories each of which employes three shifts of human workers. One fully roboticizes with machines that work 24/7 at the same rate as human workers. Why should labor productivity or output per human worker per hour change? Even if robots were treated as human workers and both factories were studied. Again, why should labor productivity or output per worker per hour change? Neither instance should change productivity. Labor productivity or even general productivity under these assumptions remains unchanged because robots are displacing workers, not making them more productive. The same is true for the same reasons if we consider factor productivity instead, labor productivity and robot productivity are the same.

If we want to go to the macro level, we see that output measured as GDP is greater even though fewer human hours are worked and fewer member of the working age population are employed, so output per human hour worked is greater, which is what we should expect if robots are displacing workers.

Too many are confused on these issues.
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Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
Extra:
Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ