The FEPM (full employment productivity multiplier)

February 4th, 2016 at 2:31 pm

Over at the WaPo, I speak to the existence of an FEPM. Hard to prove–I think you’d probably need to track individual firms over time–but I’ll bet it’s operative. I’ll note without comment that according to a BLS release this AM, productivity fell 3% in the first quarter. Now, that didn’t happen–noisy quarterly data. But the average for 2016 was 0.6% and average yearly growth has been less than one percent since 2011. (OK, that wasn’t without comment but this is one of the most serious economic constraints we face.)

Source: BLS

Source: BLS

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