Explaining Today's Collapse In US Worker Productivity

Nonfarm Productivity collapsed by 3% QoQ, notably worse than expected as labor costs jump.

Explaining Today's Collapse In US Worker Productivity 20160204_prod_0

Explaining Today's Collapse In US Worker Productivity 20160204_prod_0

Economists are gnashing their teeth to explain this "plunging productivity paradox" - we think it is rather simple...

Explaining Today's Collapse In US Worker Productivity 20160204_prod1_0

Explaining Today's Collapse In US Worker Productivity 20160204_prod1_0

While only modestly tongue in cheek, here is what is really going on...

Just under two years ago, when Bank of America's economic team still produced meaningful commentary instead of blaming the growth slowdown on the snow (especially after it said not to blame the growth slowdown on the snow), it pointed out that the real reason the US recovery was aging (this was in the summer of 2013) was the tumble in worked productivity. This is what BofA said then: "what we show below is that, outside of the tech boom in the late 1990s, productivity tends to slow as business expansions mature. Our current 'expansion' is now thoroughly mature."

https://www.zerohedge.com/news/2016-02-04/explaining-todays-collapse-us-worker-productivity

Explaining Today's Collapse In US Worker Productivity

Explaining Today's Collapse In US Worker Productivity

Anarcho-Capitalist Categorical Imperatives

AnCaps' Laissez-faire Free Trade Zone