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It has authorised public entities such as the sugar monopoly to raise pay if productivity improves (this year, sugar production is up 22%).
The cheapest and most productive thing to do will be to automate the workforce, so if productivity is what shareholders place value on, there will be mass unemployment.
Lesson No. 2: If productivity fades, we're toast.
But if productivity remains low then difficult choices lie ahead.
If productivity lags, so will wages and incomes.
This begs the question: If productivity recovers will wages for the typical worker really follow?
If productivity growth does not recover to its pre-crisis trend that has implications for inflation.
"If productivity growth is low, then wage growth will be very low".
If productivity has deteriorated, as for example in Britain since 2007, real wages must fall.
It is only affordable if productivity goes up because the economy is growing".
The UK recovery is a really good story and surprisingly job-rich (even if productivity poor).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com