Is Productivity Plunging?

New ways of producing goods and services may be causing the bean counters to underestimate productivity.

Economists argue endlessly about the importance to the economy of the money supply, interest rates and deficits. But virtually all agree that the most important variable affecting real wages and our standard of living is labor productivity: the amount of output produced by an hour’s worth of work.

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Jeremy J. Siegel
Contributing Columnist, Kiplinger's Personal Finance
Siegel is a professor at the University of Pennsylvania's Wharton School and the author of "Stocks For The Long Run" and "The Future For Investors."