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

[michael]

Suppose Nike pays some you girls $3 to make a pair of shoes and sells them for
$150,  what does that do to productivity?  Or course, if they hide proits for
tax purposes and pretend that the imported shoes were worth $125, then
outsourcing will not improve productivity.

Doug Henwood wrote:


> Christian Gregory wrote:
>
> >That underscores another aspect of America's recent productivity miracle:
> >the growing use of overseas labor.
>
> For what it's worth, a BLS economist told me that outsourcing has
> little effect on the productivity stats, since nondomestic output
> doesn't appear in the numerator, just as nondomestic input doesn't
> appear in the denominator.
>
> Doug
> ___________________________________
> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk

--

Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901