Technology, Labor, and the Decline of Productivity

The video discusses the complex issue of productivity, focusing on technology's role, labor quality, and capital investment. It highlights the shift from old to new economy R&D, the impact of labor force changes, and the need for policy-driven capital deepening. The discussion also covers business investment challenges, emphasizing the lack of incentives for companies to invest in productive assets.

What is the main focus of the shift from old economy R&D to new economy R&D?

• Increasing capital deepening

• Boosting short-term profits

• Enhancing labor quality

• Improving free time for individuals

How has the change in labor force participation affected productivity?

• It has increased the wage gap

• It has improved labor quality

• It has decreased the need for capital investment

• It has led to higher productivity

What is a significant challenge in improving productivity through policy changes?

• Excessive business investments

• Lack of technological advancements

• Short-term focus of policymakers

• High labor quality

Why are businesses not investing in productive assets as they used to?

• They are focused on hiring more workers

• They prefer short-term shareholder returns

• They have no access to new technologies

• They lack cash flow

What is a potential solution to the lack of business investment in productivity-enhancing projects?

• Focusing on short-term profits

• Reducing the wage gap

• Increasing labor force participation

• Encouraging infrastructure spending