The Productivity Obsession Has a Measurement Problem

If productivity can’t be measured (and it can’t, not really), how can we improve it?

When politicians and economists bang on about the need to increase productivity, they’re arguing about a concept that is nothing more than a puff of smoke.

The productivity obsession has a measurement problem

The focus on productivity as the key to economic growth ignores the fact that we can’t directly observe productivity. We need better ways to measure improvements in overall living standards.