Productivity is an economic term that, like others, has more than one meaning. First, there is overall productivity, meaning the collective ability of a society to produce goods and services. Second, productivity is used to explain the distribution of incomes within a society, where productivity is taken to mean the relative contribution of each of the so-called factors of production, land, labor and capital, to the production process. These two aspects of productivity are inextricably linked in the U.S. mixed economic system.
Efforts to measure productivity in the second sense are chimeras. Productivity is the result of mixing machinery, human effort, and community knowledge. Productivity does not exist independently of any or all of these. If a woman uses a … Read the rest