Labor Productivity Is Just Terrible These Days

Jobs figures for November will be released in a couple of hours, and the consensus forecast is that they’ll be fine. While you wait, however, here’s another chart to look at:

Productivity growth has dropped like a stone since 2005, and is currently hovering around 1 percent per year. That’s terrible. Unemployment is at 4 percent, which means businesses are employing a lot of people, but low productivity growth means this employment is only in lieu of investing in labor-saving machinery. After all, why bother with a big capital expenditure when future growth looks iffy and wages are flat? It’s easier and more flexible to just hire some cheap workers who can be laid off if business sours.

There’s probably something of a pent-up demand right now for labor-saving equipment, and the Republican tax bill’s bizarrely enormous incentive to pull all investment into 2018 might be just the thing to kick it off. If that’s really the case, we can kiss off any chance of sustained wage growth in the near future.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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