U.S. Productivity Rose at 0.9% Rate in Second Quarter

U.S. Productivity Rose at 0.9% Rate in Second Quarter
Nonfarm business-sector productivity increased at a 0.9% seasonally adjusted annual rate
By Ben Leubsdorf
Aug. 9, 2017
https://www.wsj.com/articles/u-s-productivity-rose-at-0-9-rate-in-second-quarter-1502282186

U.S. worker productivity picked up modestly in the second quarter but showed little sign of breaking out of the sluggish trend that has prevailed for more than a decade, holding back economic growth and living standards.


Rapid productivity gains, as seen during the information technology-fueled boom of the late 1990s and early 2000s, can boost household incomes, economic growth and government tax receipts.


Glenn Hubbard, dean of Columbia Business School and a former top White House economist under President George W. Bush … said the government can help to boost productivity growth by overhauling business taxes, rolling back regulations and supporting basic research. Such steps could increase business investment and the know-how that helps to fuel growth.


Federal Reserve Vice Chairman Stanley Fischer said “government policy works best when it can address a need that the private sector neglects, including investment in basic research, infrastructure, early childhood education, schooling and public health.”

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