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Increase in productivity equals less jobs
Sabotage comes from the French word, "sabot," meaning a type of wooden
shoe.
Long ago, workers in Europe threw sabots into the gears to stop production because
they thought machines were taking their jobs. Over the long haul, they were wrong. Machines made production cheaper,
which increased demand, which created more jobs.
But now it almost appears as though the saboteurs were onto something. At least
Alan Greenspan thinks so. The chairman of the Federal Reserve says joblessness isn't decreasing, though the economy
is improving, and he blames it on growing productivity.
It takes only half as long to manufacture an automobile today as it did a generation
ago, so if a carmaker, or any other manufacturer, is producing more with the same labor force, why hire more people?
Maybe all is not lost. Greenspan himself thinks the rising growth in productivity
isn't sustainable and the job market is sure to improve at some point.
Still, there's a nagging suspicion that much of the recent increase in productivity
was attained by eliminating jobs that weren't essential to begin with. Having learned they don't need them, businesses
aren't likely to restore them.
- George Rogers
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