What makes the productivity numbers so impressive is that they are rising while labor costs are remarkably restrained and the labor market so tight. Mass. Based on Salsman's calculations, the U.S. government is short-changing the American workers' productivity rate and blurring Greenspan's view of the economy. Salsman said that from 1988 to 1998, productivity soared 6.2 percent per year, which is in sharp contrast to the Bureau of Labor Statistics' own estimate of 1.7 percent. The government hasn't found a yardstick to measure the productivity of the service industry, which is a big factor in today's economy. The truth, though, is that that sector is nearly impossible to measure.
Computer users can relate to the productivity of the spell-check function of word processors.
It's an incredible productivity booster in spotting typos and misspelled words. In a distant age of factory whistles and time clocks, that concept might have been relevant. The companies' numbers are crunched by objective CPAs who use strict accounting standards. Too much tinkering by the Fed. Of course the govn.