[lbo-talk] Roach: Productivity in the New Economy

[Brad DeLong]

>  >But if the Commerce Department is unable to accurately track 
>overseas goods made by U.S. affiliates when they enter the country, 
>then we are understating imports and overstating productivity.
>
>Is there anectodal evidence of this (ie since you say that you can't 
>be quantified)?
>
>Christian
>
>
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There *are* stories about things the Commerce Department would be 
unable to track. But productivity growth as measured over the past 
two years has been 5.4% per year. For even 1/3 of that to be due to 
mismeasured outsourcing, we would have to be missing $360 billion 
more of imports this year than we missed two years ago--and that's 
the number that none of us can swallow, it's just too big.

Brad DeLong