“Growth is never by mere chance; it is the result of forces working together.” - James Cash Penney
Summer is all about sunshine, tan lines, sunglasses, beaches, long nights, tall drinks, relaxation, and if you’re lucky a summer vacation or two. It’s always bittersweet nearing the end of all the summer fun, however, I will say I was doing the happy dance yesterday as my kids skipped off to their first day of school. As my kids continue to grow … so do the markets.
Productivity growth, a key driver for higher living standards, averaged only 1.3% since 2006 which was less than half the rate of the previous decade. However, on June 3, the US Bureau of Labor Statistics reported that US labor productivity increased by 5.4% in the first quarter of 2021. What’s better, there’s reason to believe that this is not just a blip, but rather a harbinger of better times ahead: a productivity surge that will match or surpass the boom times of the 1990s. Technology alone is rarely enough to create significant benefits. Instead, technology investments must be combined with even larger investments in new business processes, skills, and other types of intangible capital before breakthroughs as diverse as the steam engine or computers ultimately boost productivity. (MIT)