• Gerd Weyer

Increasing Productivity

The opportunity to pursue happiness increases with time for leisure and the capacity to purchase goods and services. The only way to simultaneously increase leisure and the capacity to purchase is by increasing productivity. Productivity increases when the time it takes to locate, extract and transform natural resources into goods and services decreases. For example, productivity increases when the time that it takes to produce a car declines from 100 to 90 hours, and people can spend the saved time at leisure, the production of more goods and services, or a combination thereof.

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Relative Income

Individual capacity to purchase goods and services depends on per capita economic output and relative income from the sum of wages, compensation, and transfer. There are a certain number of goods and

Long Term vs Short Term Economic Output

It is relatively easy to increase economic output in the short-term; borrow and spend more. Borrowing $100,000 and purchasing a productivity improving excavator or a leisure enhancing RV causes GDP to

How Productivity Affects Society

The opportunity to pursue happiness, or time for leisure and capacity to consume, increases with productivity. Over the long term, per capita growth occurs because of productivity gains or when people