Source: Adam Smith Institute
by Tim Worstall
“Everyone’s managing to come around to Paul Krugman’s point – productivity isn’t everything but in the long run it’s pretty much everything. It’s most certainly the determinant of our long run living standards. Gaining more value from each input – that’s total factor productivity – or more value from each hour of labour – labour productivity – determines, absolutely, the living standard we can gain from total resources or an hour of human labour. This does not advance by people in government – or anywhere else in fact, Ms. Mazzucato – having grand plans about what everyone should do. It comes from tens and hundreds of millions of people experimenting, having a go. We then do more of what works and less of what doesn’t and there we are – living standards rise.” (01/30/25)
https://www.adamsmith.org/blog/productivity-rises-if-allowed-not-because-it-is-planned