Productivity Up, Social Security Deficit Down?
Can this article by Matthew Yglesias at Talking Points Memo be correct?
Isn't productivity the ratio of output to labor hour. Can't, and
doesn't, productivity improve by reducing the denominator. And
isn't that what America has been about through outsourcing and
work force rebalancing? And don't these actions result in fewer
workers and lower payments into social security?
Hence, isn't the statement that "As we've been
noting, if productivity rises faster than anticipated, that will make
Social Security's deficit smaller than anticipated." potentially
incorrect?
James Drogan
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