Class Notes (810,222)
Canada (494,004)
Economics (1,582)
ECO100Y1 (431)
Jack Carr (32)

How to Increase Productivity

5 Pages
Unlock Document

University of Toronto St. George
Jack Carr

th, March 17 2009 -Reduced person hours to build cars by 13, 1990-2008 increase of productivity in the big 3 car manufacturers, Toyota and Chrysler-31.5 hrs to build a car, Honda 31.3, Nissan 33, ford 33.8, average compensation for the big 3 American car maker is higher, Japanese had profits, American had losses -new development emerging in Asia that will crush the big 3, Indian Car maker-Tata Peddling Prosperity- Krugman-10.2 Krugman disliked Thurow, -Canadian productivity story Krugman-1973, magic went away, economic growth is magic-labor productivity is magic as well 1991-avg American family income went up by 5%, got that from working longer hours Two types of economists-Policy Entrepreneurs-offer politicians simple solutions to complex problems, analysis are flawed-(thurow, prestowitz), wrong solutions Professors-work on answers, usually at universities Policy entrepreneurs said countries must be competitive, is Canada going to be competitive, Krugman says countries are not competitive, industries within the country is competitive Policy entrepreneurs-countries with lower productivity will not be competitive, will fall backwards, Krugman-look at comparative advantage, if countries engage in trade with comparative, both achieve strong trade Economic war between US, Japan and Germany-Thurow, US decided to lose the battle Krugman-problem between communitarian and individualistic capitalism -suppose US demands Japan to increase imports from US, Japan retaliates, US counters Solution: raise labor productivity in US, increase R&D funds, improve education, encourage US households to save -Depression, runaway inflation, and civil war can make a country poor, but only productivity growth can make it rich -only way in the long run to increase standard of living is to increase labor productivity -in 1967, Fortune magazine surveyed American Industry, how much will real wage increase in the next Z7o2ZZ}o]L Z7ZKZ^ZK[ZK]Zl}}o]}L}KZ Krugman-late 19 century to WWII, labor productivity rose by 1.8% in the US WWII to 1973-2.8% 1973-1990- less than 1% Why did productivity growth slow down? 3 different stories that account for slowdown in US 1) Technological factors-no new basic technologies, except computers in the IT sector is coming forward, but it takes a long time for a major new technology to have a major impact-industrial revolution-textile innovation, takes years for real wage to increase 2) Sociological explanation-decline in education standards in the US, education standards was falling, motivation is not the same, between 1960 and 1990, public school students increase by
More Less

Related notes for ECO100Y1

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.