What Economists Get Wrong About Measuring Productivity

I find it interesting to listen to economists talk about U.S. productivity growth – or the lack thereof. It has been a source of much fretting over the years.  The 3+%/year labor productivity growth rates of the 1950s and 1960s slowed to under 2% in the 1970s and then to 1.5% in the 1980-1995 period. There was a heartening rally between 1996 and 2004, when growth returned to its 1950s/1960s levels of 3% — a performance almost universally attributed to the efficiency gains from information technology.

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