productivity miracle or workhouse?

[Brad De Long]

>The bourgeois line is that higher productivity will lead to higher 
>living standards. If there were a productivity miracle underway, we 
>should be enjoying a great wage boom (and a loosening of fiscal 
>stringency). We're seeing higher real wages, but no boom...
>
>Doug

We continue to hope.

If the shift to a higher-investment economy induced by the 
deficit-reduction programs of 1990 and 1993 don't produce first a 
productivity boom and then a long-run real wage boom, then us 
Democratic neoliberals and Clintonistas will have put in place an 
economic policy that will have done good only for Republicans...

How much longer do we have before we have to admit defeat?

Brad DeLong