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More grim ruminations on our economic prospects: What if recessions do permanent damage, diminishing a nation's productive capacity?
Although current developments do not appear to have materially diminished the prospects for long-term growth in productivity, excess productive capacity has emerged recently.
Prices for crude food stuffs rose by 5.2% in July alone.The impact of the drought on production is quite clearly a supply shock; productive capacity has actually been diminished and prices have risen as a result.
Given the new machinery and four production staff, full productive capacity has been carefully measured.
Many workers will lead permanently diminished careers, and the economy's long-run productive capacity may be permanently lowered.
Simply increasing wage levels and extending jobless benefits once again won't solve the problem of long-term unemployment and underemployment, and the diminishing impact income losses have on the long-term productive capacity of the United States economy.
The result, as Wilcox and his colleagues persuasively argue, is that productive capacity and the effective labor force have moved onto diminished growth paths.
Although the recession has seen a steep fall in output, it has also hurt productive capacity.
In March 1971, Texas reached maximum productive capacity.
And productive capacity is not fixed.
Productive capacity varies from person to person.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com