Sunday, March 7, 2021

Which governments can get out of the way of growth?

John Cochrane reminds us to keep our eyes on the prize:
In the long run, nothing else matters. GDP buys you health, advancement of the disadvantaged, social programs, international security, and climate if you are so inclined. Without GDP, you get less of all.  Economic policy should have one central goal -- get productivity growing again, or (in my view) get out of the way of its growth. This is the one little hope that has not been let out of the policy Pandora's box, focused on everything else right now.

Macroeconomists classify two basic types of growth:  

  • More inputs (labor, capital) lead to more output (GDP)
  • Technological progress (Total Factor Productivity) increases output for the same level of input.





And here is the change in Total Factor Productivity across countries.  




We have blogged about the dearth of unicorns in the EU,
  Infographic: The Countries With the Most Unicorns | Statista 
Total Factor Productivity seems to be telling the same story.


2 comments:

  1. You have done a great job. I will definitely dig it and personally recommend to my friends. I am confident they will be benefited from this site.
    Accounts Receivable Process

    ReplyDelete
  2. To know more about Chief Dr Lucky you can visit his website (https://chiefdrluckyherbaltherapy.wordpress.com/)
     
     A friend that suffered from Herpes and was cure with the help of this great herbal doctor Chief Lucky so i decided to contact him for help in getting rid of my families genital herpes virus 1/2 which i did and all i was told to provide was just some useful information and some materials used in preparation of the natural cure and that i did and now i am the happiest person on earth because i am writing this testimony of mine with joy and happiness in my heart to the whole world to know that natural remedy is real because i am a living testimony of Chief Lucky traditional herbal cure and i want you all to contact Chief Lucky via his email: chiefdrlucky@gmail.com or WhatsApp him +2348132777335 am sure he will help you too.

    ReplyDelete