This downturn will continue to marginalize labor's position in an economy where the non-human factor of production, productive capital, is the factor that is exponentially becoming more productive, not labor.
Thus, as the non-human factor of production becomes increasingly more productive, there will continue to be less employment opportunities as long as the economy does not significantly expand, especially with respect to affluent-level wage and salary income.
It can, for example, measure the marginal productivity of a particular factor of production (i.e., the change in output from one additional unit of that factor).
In a competitive market, the payment to each factor of production equals its value of marginal product.
These arguments fail to point out the income source for the richest one percent is not their labor but their dividend income derived from their ownership of productive capital assets--the non-human factor of production.
For example, the extent of any foreign direct investment [ 19], the degree of international trade in the products that use that input or factor of production [ 20], the extent of union power [ 21], and the nature of market structures [ 22] have been identified as possible determinants of price or wage variations across countries.
In a suitably fact-packed new report, "Big data: the next frontier for innovation, competition and productivity", MGI argues that data are becoming a factor of production, like physical or human capital.
From a theoretical standpoint, the role of infrastructure on growth has evolved from the standard Solow-style model where infrastructure is an additional factor of production to models of endogenous growth in which it helps boost total factor productivity.
IN THIS week's print edition, we take look at land and its importance as a factor of production.
Price may a tool, but the language of natural capital somehow reinforces the notion of nature as a mere factor of production, as opposed to being the "parent company", as ecological economist Herman Daly put it.
In modern economics, the term "capital" has been purged of its ideological fire and is treated as just another "factor of production," which, like labor and land, earns a competitive rate of return based upon its productivity.
