In an era of rapid expansion and much new technology, the revenue each worker earned for his company rose despite falling prices. More money was available for both wages and profits, and both rose. As railroads spread across the country, replacing horses, more freight and more passengers were moved longer distances, faster, through all seasons. Revenue per railroad worker rose while rates fell. The telephone brought a similar result in communications, and the Sears, Roebuck catalogue in retailing.
Various economists agree.
Official statistics show little, if any, enduring improvement in the weak rate of productivity growth that has prevailed for 25 years. A few experts maintain that a new era of rising productivity has dawned that is not yet captured in the statistics. But these days, as prices fall or cease to rise, corporate profits have grown more slowly or disappeared entirely. Job growth has also subsided, and layoff announcements appear more frequently. Rising productivity does not seem to be saving the day.