In response to an FT Blog by Gavyn Davies on 21st June 2015, entitled 'US Productivity - the dog that isn't barking at the Fed'
"Is the slowdown being exaggerated by mis-measurement in the official economic data, because the impact of IT on productivity is being under-stated? "
No - the whole picture of what is happening in the real US economy is being distorted by mis-measurement of the official economic data, through:
1. GDP figures that are being inflated by politically motivated 'seasonal adjustments', which conveniently support the Fed's jawboning of the stock market
2. Inflation figures that bear very little resemblance to rises in the cost of living, particularly for poor people, and which conveniently hold down annual rises in benefits and social security
3. Unemployment figures that:
a) Count 1+ hours a week as a job
b) When three of these jobs are being carried out by the same person that is counted as three 'jobs'
c) The jobs being lost are 50k+ jobs whilst the 'jobs' being gained are part-time low wage jobs
d) The majority of these jobs are being taken by the 50 plus age group, not young people
In short, the official presentation of what is happening in the US economy is as bent as a nine dollar note...garbage in, garbage out.
You are right Mr Davies, productivity is being eroded - the life is being sucked out of the US economy by the distortions and mal-investments generated by Federal Reserve monetary policies, coupled with governmental taxation, regulatory and fiscal policies that urgently need reform - which, amongst other things, make it increasingly difficult for small businesses to create new jobs.
Politicians and government academics typically don't 'get' productivity. Most of them have never produced anything. They are like kids who want a McDonald's but have never seen a cow, let alone reared one.