Saving power?

Savings (overruns)

Economizing Life and Death

Austerity has failed.

Saving Resources to Save Growth

Jeremy Lin and the Political Economy of Superstars

Too Much Saving, Too Little Investment

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It is just the same with us. I mention political economy you say it makes things worse.

The Fragile Roots of Productivity Growth

The Productivity Gap

The cause of this state of affairs, in one word, is austerity.

But austerity can never be self defeating for the external adjustment.

The potential energy savings is very, very significant.

You can end up saving money, and lives, and oil, all at the same time.

There are clear externalities and economies of scale.

There is our work life, where we're productive.

Could lead to more productivity.

Moreover, an influential paper by the American economists Carmen Reinhart and Kenneth Rogoff suggests that economic growth falls sharply when a country s public debt rises above 90 of GDP.

So the policy prescription for solving the crisis seems simple austerity.

Unfortunately, the political economy of austerity has led to sub optimal outcomes.

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And overall productivity growth is 3.5 per year.

Where America's productivity growth is coming from is clear.

That leads to productivity.

There is much room for increasing productivity.

After a lag, productivity accelerated again.

In December, as Europeans shifted towards fiscal rigor, the US Congress extended for two years the tax cuts initiated by George W. Bush which almost everyone interpreted as yet another effort to boost the US economy.

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The roots of Greece s problems stretch far deeper than the austerity of recent years.

True, fiscal retrenchment in Germany is more cautious than official rhetoric suggests.

This will raise actual output to the level of potential output, thereby closing the output gap.

The result is red tape all over and a huge drag on productivity.

A much larger share was lost productivity.

This undoubtedly had a negative impact on productivity growth.

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Unit labor costs reflect compensation levels and productivity gains in productivity can offset the effect of wage growth.

But, rather than helping, the rush to budget cutting is reversing earlier recovery efforts.

With private sector demand still weak, austerity is slowing, not accelerating, recovery.

So is higher productivity the way out?

But improvements in productivity are easily overwhelmed by changes in wages.

Unemployment was soaring, and austerity, rather than restoring fiscal balance, simply exacerbated the economic downturn.

But a productivity revolution in service sector delivery is now possible.

This is the great decoupling of productivity from employment, of wealth from work.

Given productivity constraints, redistribution is only palliative, not curative.