<p>Productivity gains either allow to produce more with constant inputs, or to produce the same amount as before with fewer inputs. It is to individuals and firms to decide what to do do with productivity gains. In a market economy, the price and wage 
adjustments induced by productivity changes help individuals to decide whether to work less or more, to invest and hire more employees, etc.</p>

<p>Usually productivity gains do not fall from heaven, firms and individuals have to pay for it (R&amp;D, organizational change, etc) so it is not necessarily good, it is however welfare 
improving if the price paid to achieve productivity gains does not increase the benefits (private or public). How costs and benefits from productivity changes are shared 
in order to promote both equity and further productivity gains is a challenging societal and political issue.</p>

<p>Contrary to the claim of your citation, productivity gains do not systematically increase wages, it depends on the technology and the structure of the commodity and labour market.</p>

CC BY-SA 4.0
2019-08-24T14:10:13.830Z
2019-08-24T14:10:13.830Z
Bertrand
<p>From <a href="https://www.investopedia.com/ask/answers/040615/why-productivity-important-concept-economics.asp" rel="nofollow noreferrer">investopedia:</a></p>

<blockquote>
  <p>Supply rises with productivity, dropping real prices and increasing
  real wages; it lifts people out of poverty and allows them to focus on
  efforts beyond mere survival.</p>
</blockquote>

<p>I thought I was naive so I asked google why productivity was <em>always</em> good in economics and this is "google's answer."  Does economics really assume that whatever work a human does, doing it less and something else more is always better for them?</p>

CC BY-SA 4.0
2019-08-24T14:04:29.830Z
Why using "infinitely" in your title?
Bertrand
CC BY-SA 4.0
2019-08-25T00:39:16.440Z
Because there's no qualifier in the original text?
Audiomatt
CC BY-SA 4.0
2019-08-25T10:07:13.523Z
There is no adjective in the original text, because productivity is not "infinitely" good. Your question would be less ambiguous if "infinitely" was removed... Your current formulation generates reluctance to answer.
Bertrand
<productivity>
Why is increased productivity infinitely good
Audiomatt
# Why is increased productivity infinitely good

(Asked by: username_0 on 2019-08-24)

From [investopedia:](https://www.investopedia.com/ask/answers/040615/why-productivity-important-concept-economics.asp)

> Supply rises with productivity, dropping real prices and increasing
> real wages; it lifts people out of poverty and allows them to focus on
> efforts beyond mere survival.

I thought I was naive so I asked google why productivity was *always* good in economics and this is "google's answer." Does economics really assume that whatever work a human does, doing it less and something else more is always better for them?

**Tags:** productivity

> **Comments:**
> **username_1**: Why using "infinitely" in your title?  
> **username_0**: Because there's no qualifier in the original text?  
> **username_1**: There is no adjective in the original text, because productivity is not "infinitely" good. Your question would be less ambiguous if "infinitely" was removed... Your current formulation generates reluctance to answer.  

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## 1 answers

### Answer by username_1 on 2019-08-24. Score: 2

Productivity gains either allow to produce more with constant inputs, or to produce the same amount as before with fewer inputs. It is to individuals and firms to decide what to do do with productivity gains. In a market economy, the price and wage
adjustments induced by productivity changes help individuals to decide whether to work less or more, to invest and hire more employees, etc.

Usually productivity gains do not fall from heaven, firms and individuals have to pay for it (R&D, organizational change, etc) so it is not necessarily good, it is however welfare
improving if the price paid to achieve productivity gains does not increase the benefits (private or public). How costs and benefits from productivity changes are shared
in order to promote both equity and further productivity gains is a challenging societal and political issue.

Contrary to the claim of your citation, productivity gains do not systematically increase wages, it depends on the technology and the structure of the commodity and labour market.


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