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by roenxi
497 days ago
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You've not fully comprehended the nature of productivity. If a doctor saves the life of a lazy labourer then they've created a certain amount of economic value. If they save the life of a very hard working labourer they created more economic value with the same actions [0]. Your productivity isn't just you, it is the entire system your work take place in and what capital it interacts with. Otherwise engineers would be worthless, we barely do more than mumble and wiggle our fingers. It is entirely possible that moving from Poland to the UK doubled the amount of wealth you were generating. Dutch disease is an expression of that - if all your customers are wealthy then the economy signals that you are more productive than if all your customers are poor. Because you are. Although I'm all aboard with Lyn Alden’s complaints. The US keeps disabling economic feedback mechanisms rather than reform failures and it is starting to catch up with them since the Chinese just work harder than they do. EDIT And I think you might want to talk about the Baumol effect, not Dutch disease. Dutch Disease is typically invoked for countries that find high mineral wealth and then experience problems but Baumol effect is more relevant to productivity increases. [0] We make no moral judgement, but economics is a harsh accountant. |
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