The Productivity Gap
The story of growth is productivity. Doing more with less. Before one can do more with less, one must learn. Thus, with experience comes productivity, particularly in a service-based economy. It is not a surprise that the proportion of experienced people in the workforce, particularly the 35-50-year cohort, provides a good description of productivity growth. If this is the case, then stories of secular decline are premature. In this environment, inflation can remain constrain