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Now, five years later, there can be little doubt that not only has productivity growth picked up from its rather tepid pace during the preceding quarter century but that the growth rate has continued to rise, with scant evidence that it is about to crest.
The acceleration of productivity stemming from the investment boom has held cost increases in check. Despite the surge in demand, unit labor costs over the past year have barely budged, and pricing power has remained well contained. Apparently, firms hesitate to raise prices for fear that their competitors will be able to wrest market share from them by employing new investments to produce at lower costs...
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Common topics in this essay:
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