Rattner: Lack of Productivity Growth Serious Problem

The transcript discusses the critical issue of declining productivity growth, which is a major economic problem. It highlights the importance of productivity as the engine of the economy and its impact on GDP growth. The discussion includes potential solutions, such as increasing investment and automation, to address the decline. Additionally, it touches on the challenges of measuring productivity accurately in the digital age, noting historical issues with measurement methods.

Why is declining productivity considered a major economic issue?

• It leads to higher inflation rates.

• It reduces the potential for GDP growth.

• It increases the labor force participation rate.

• It causes a surplus in the economy.

What is one proposed method to increase productivity according to the video?

• Decreasing the number of robots in industries.

• Investing in more automation and mechanization.

• Increasing the number of working hours.

• Reducing labor costs significantly.

What is the irony mentioned in the context of robots and productivity?

• Robots are not effective in increasing productivity.

• There are too few robots, leading to low productivity.

• There are too many robots causing unemployment.

• Robots are too expensive to implement.

What historical example is used to illustrate measurement issues in productivity?

• The exclusion of smartphones from economic data.

• The early inclusion of household appliances in economic measures.

• The late inclusion of automobiles in the consumer price index.

• The inclusion of computers in the CPI.

What is the conclusion about productivity measurement challenges in the digital age?

• They have been completely resolved with new technology.

• They are unique to the current economic climate.

• They have always existed and are not necessarily worse now.

• They are significantly worse than before.