Thursday, May 05, 2005

Economic Report: U.S. productivity accelerates to 2.6% in first quarter - Economy - Bond Market

Productivity was back up to 2.6% for the past quarter. This is a fantastic number. It looks weak because of the 4% and better rates of recent years. However, it is natural for the rate to come down as the business cycle works its way into the expansion phase.

An annual productivity of 2.6%, among other things, means social security recipients will get a 2.6% increase over the cost of inflation; not a bad real raise! Increases of this magnitude says that one worker does the job of two in 25 years.

Technology is wonderful. We live better through technology. We live in an age of steady improvement.Buy the big, bull, boom, bubble, before the bust that will come near the end of the decade