Thursday 28 August 2014

How has the US increased in productivity?

How has the US increased in productivity?
Over the long term, productivity in the United States and othermodern economies has increased. There will always be fluctuationsin any nations' economy, this is natural. However the examplesbelow are proven methods for long term continued growth in most ifnot all of economic measures.

Most modern day nations, including the United States, can increaseproductivity in a number of ways. Often the increases may be ofeither short term or long term policies.
1. A proven method to increase productivity is by the creation ofnew technologies and methods to put these new technologies intopractice. The introduction of assembly line practices in theautomotive industry by Henry Ford is a good example. Previouslymost new autos were basically handcrafted and the cost to theconsumer was partially based on the high cost of labor. By enablingthe production of automobiles in the assembly line method, carsbecame less expensive, demand rose, and productivity in Ford'sfactories increased. Ford basically took the new technologies thatadvanced the automobile to a workable machine and found a betterway to produce them and to do so in both quantity and in quality.

2. Another way to increase productivity is to make funds availableto build new, more efficient factories, mining techniques andpromote more research. This can happen by having the governmentlower taxes and /or provide incentives for these activities.Ideally the taxes will become paid for as the increase inproduction provides new jobs and new profits all of which can makeup the initial reduction of funds headed for a nations treasury.

3. The above two examples can be enhanced by a government investingin all levels of education. This then provides educated workers andscientists for the overall benefit of the nation. Privateeducational facilities can do this of course,however, governmentfunding of public universities as an example is proven to createthe new technologies cited above. There is a wealth of evidence toprove this. A Georgia Tech in Atlanta Ga. for example is subsidizedand the result has been hundreds & hundreds of new patents toadvance the development of new products.

No comments:

Post a Comment