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Fischer: Government Policy and Labor Productivity
I want to talk tonight about labor productivity growth. Labor productivity is the amount of goods and services produced per hour spent on the job. Increases in labor productivity--again, that's the amount of goods and services produced per hour on the job--are a fundamental factor in determining how fast the economy grows, and how fast the average standard of living grows. And productivity growth can be influenced by government policy, about which I also want to say a few words.1 Labor productivity growth varies a lot from year to year, but it is possible to discern longer historical periods with high or low ... (full story)