A study conducted by The Conference Board found that \"(t)he productivity level
ID: 1218027 • Letter: A
Question
A study conducted by The Conference Board found that "(t)he productivity level in the Euro Area, measured as output per hour in US dollars (after adjustment for differences in relative price levels using purchasing power parities), is just 76. 7 percent of the US level in 2013, leaving an almost 25 percent gap between Europe and the United States". This is consistent with the common view that American workers are (some of ) the most productive in the world (for example, on January 24, 2012, in his State of the Union Address, President Barak Obama stated "Our workers are the most productive on Earth, and if the playing field is level, I promise you-- America will always win."). What factors can explain U.S. labor productivity to be higher than most countries' labor productivity?
Explanation / Answer
American workers stay longer in the office, at the factory or in the farm than their counterparts in Europe and most other rich nations, and the produce more per person over the year. They also get more work done than anyone else which is why it leads the world in labor productivity. Each worker is in the U.S. produces more wealth than their counterparts in all other countries at $63,885, the highest in the world.
America’s increased productivity has more to do with Information and Communication Technologies (ICT) revolution, the way the U.S. companies organizes companies, with the level of competition in the country, and with the trade and investment abroad.
*****
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.