Re: Re: Re: Recession warnings

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Even worse, I think that the ability to measure productivity in general
is pretty weak.

Doug Henwood wrote:

> Jim Devine wrote:
>
> >Though I agree with the conclusion, the analysis is weak. Faster
> >productivity growth slows employment slowly, over time. When a
> >recession hits, productivity growth slows (or even becomes negative)
> >as businesses hold onto overhead workers in hopes of future
> >profitability.
>
> There are loads of anomalies in the productivity stats. Nondurable
> manufacturing productivity is flat; it's all concentrated in
> durables, and within durables, in high-tech production. Service
> productivity has picked up a bit, but not that profoundly. Looking at
> the aggregate number is very misleading.
>
> Doug

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx