I frequently get a headache trying to understand Stanley Fischer’s speeches or interviews.
OK, US labor productivity is declining. But he is hoping the technological advances with fix the problem? Other than create even MORE unemployment?
“We’re growing at around 2 percent, and the problem we face is that of productivity,” Federal Reserve Vice Chairman Stanley Fischer said in an interview on Bloomberg Television Tuesday. Growth in workers’ output per hour has been restrained by factors including an aging labor force and weak corporate investment. The former Bank of Israel governor said he sees hope for a pickup eventually because “remarkable” technological advances haven’t showed up in the data yet.
I wasn’t quite sure what Stanley Fischer meant by growing around 2%, since both nonfarm output and real GDP are growing at substantially lower rates than 2%.
I hope Stanley isn’t talking about the technological innovations like the pizza making machines that are being turned to as minimum wage legislation gains traction. Hopefully, he is talking about technological innovations (like the industrial revolution) that increase higher wage employment.