Wednesday, April 11, 2007

Kelly's Theory of Productivity

has been expounded in the 'Comments' section here and here.
It is this -
"In a global labour market, overall productivity gains equal zero; or, globalisation is productivity dilution."
(Cross-posted on 'Nourishing Obscurity').
(Update, April 11 2006 -

This is a quite perfect illustration of the perils of blogging late at night and early in the morning, and of trying to be profound while sober. Brethren of the Cybersphere, take note.

Kelly's Revised Theory of Productivity reads,

"In a global labour market the overall gains occasioned from productivity growth equal zero: or, globalisation is productivity dilution."

Well, that's the Nobel gone for another year...)

2 comments:

Tristan said...

Looks like nonsense to me.

Economics is not zero-sum, that includes productivity. We invent new ways of doing things, we spread our labour out over an ever greater jobs doing ever more things.
Both of these lead to productivity growth.

I'm trying to work out if this is left-wing protectionism or right-wing nationalism (they both come down to the same thing - fuck yourself over in an attempt to fuck others over)

Martin said...

Tristan,

You learned your economics lessons well; on the other hand I have never taken an economics class in my life.

However, you repeat the textbook phrase 'Economics is not zero-sum' without thinking whether or not it should now read 'Economics should not be zero sum' instead.

Unfortunately, for a lot of people out a zero sum game is precisely what it seems to be becoming.