Focus On Productivity For Higher Living Standards
January 16, 1996
- Had productivity grown at more than 2 percent over the last 20 years, the typical American family would have earned some $60,000 more during that period -- and better than $5,000 more during 1995 alone.
- There would be no federal deficit at all at current levels of government spending, but rather a substantial surplus.
- Taxes have thus become an increasing burden, and a significantly smaller percentage of Americans under 45 now own their own homes.
Economists cite many reasons for the slowdown. Among them are the increasing stranglehold of government regulations, as well as the decline in education in the U.S. and low rates of savings among Americans.
Source: Jeffrey Madrick, "Post-1973, the Era of Slow Growth," New York Times, January 16, 1996.
Browse more articles on Economic Issues