It’s Free Trade, Not Tariff Walls, That Drives Excellence And Competitiveness

It’s competition that drives up productivity – why bother to do that hard work if you don’t have to? Foreign trade is simply that competition from foreigners that similarly drives up productivity. We have historical evidence of this too:

Early 20th century American exceptionalism: Production, trade and diffusion of the automobile
Dong Cheng, Mario Crucini, Hyunseung Oh, Hakan Yilmazkuday 08 November 2019

As the current narrative goes, the loss of US manufacturing jobs is due to competition from China and one way to get the jobs back is by running tariffs up the proverbial flagpole.…

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Happier Employees Are More Productive – Great, Another Problem Solved Then

It’s often enough necessary to shake the head to get rid of the steady hum of bullshit being shouted at us. Innumerable studies showing us that this or that – say, diversity among management or workforce – makes a company more productive. Sure and OK, perhaps it does. The bullshit being the next step when we’re told that therefore we must have laws to impose this or that. The failure being to miss that we’ve already got a mechanism which does this, that market economy out there.

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The Bangladesh Garment Workers Are Actually Well Paid, Not Badly

There’s a strike or two taking place in Bangladesh over wages for garment workers. The workers wanting more money of course, the employers not really desiring to give it to them. Ho hum, how surprising.

The thing is though, by the standards of this time and that place those garment workers aren’t badly paid. In fact, they’re rather well paid by those standards, even as they’re badly paid by our standards or of richer places more generally.…

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If Only The Observer Had A Clue About Economics

There was a time when The Observer did in fact understand this socioeconomic polity around us. Sure, they were on the left of the argument even back then but that was when being on the left was being on the right, correct, side. You know, free trade, international markets, globalisation, all that stuff, in opposition to the more conservative protectionism. Things have changed somewhat.

No, not just that they’re hopelessly woke and all that. But they’ve not got the economic chops, the hinterland in theory and knowledge, to be able to understand what they’re being told.…

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How The Heck Does Plutocracy Reduce Productivity?

I fear that we’re getting matters economic rather mixed up over there on the left. For we’ve the claim that higher wages for CEOs, better dividends, reduce productivity or something. Rather than their both being symptoms of improved productivity. After all, there has to be a surplus for the capitalist plutocrats to swipe, doesn’t there? That surplus being created by rising productivity.

Soaraway salaries for top bosses are a marker of a winner-takes-all society. They are the encapsulation of a world where success can only be measured in hard cash and the state is expected to step out of the way.

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From The Observer – Obeying The Law Is Theft Now Apparently

A seriously startling assertion in the economics leader in The Observer today:

It seems it is still seen as radical to analyse the flows of money in the world as if much of it was stolen, and how that skews investors’ decisions. But it’s not radical: it’s a fact. Tax alleviation structures dominate company decisions, but are rarely debated by students. Some of the money will be drug money or gains from organised crime. But most of it will be money that avoided tax in the country where it was generated.

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To Explain Declining Productivity Growth – Not Enough Companies Going Bust

The single most important determinant of future living standards is whatever increase there is in labour productivity. Quite how that rises is, well, it’s arguable. Certainly, it’s not something that government directly controls. Sure, we get all that shouting about how i there was just more investment, a national investment bank, if The Senior Lecturer and John McDonnell controlled who did it, in what and where, then it would rise. Then we’ve the actual economists who seem to think that it’s about not enough new companies coming through.…

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Where’s All The Economic Growth? Goldman Sachs Blames Apple’s iPhone

Perhaps not blames Apple’s iPhone but Goldman Sachs is using the company’s products to explain where that missing economic growth is. One of our basic economic problems at present is that we know we’re in the middle of a technological revolution. There simply isn’t a technology that has come anywhere close to arriving in the hands of actual users as fast as the smartphone and mobile internet. The next closest competitor is the mobile phone itself.…

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How Wondrous, GMB Reports That UK Has Lost 600,000 Manufacturing Jobs

GMB is an amalgamation of various craft and industrial unions over the decades and as such can reasonably be regarded as having a concern for the existence of jobs for people skilled in crafts and matters industrial. The rest of us should be reading their most recent report the other way around. For it’s just fantabulous that there are 600,000 – perhaps 20% – fewer manufacturing workers than there were in 2007. This means there are 600k people to work on sating some other human want or desire.…

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WhatsApp Is In GDP As A Reduction In Productivity

AEI is asking where’s the next productivity revolution going to come from? The answer being that it’s already here.

So when will the next productivity boom happen?

If the US economy is going to generate sustained 3% annual growth, or anything close to that, it will require much faster productivity growth.

As I say, the answer being that this is already here. We’re measuring the digital economy wrongly. Hal Varian says that GP doesn’t deal well with free.…

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