AS in my last blog. I already asked the question, does it really will kill jobs? We all know that productivity will increase but will jobs be decreased by that fact. This article is about that.
The article asks this question and in this article the McKinsey Global Institute says no. The MGI Says that productivity comes hand in hand with job growth and that increasing productivity in crucial for jobcreation. The MGI gives three reasons why productivity and job growth can complement each other. The first one is productivity can lead to cost reduction. This will lead to lower prices and more demand of the customer, and so also need for more employees. Second the productivity growth is not always about reducing input costs but also about better quality, a higher output. Third sustaining global competitiveness requires ongoing productivity gains. Therefore attracting and maintaining local Jobs.
I think they are right but only for the close future. Our blog is about is this function divergent or convergent not everything in between. we want to look at infinity where you can divide by 0. This article feels like its made for Americans who are afraid of the word productivity. It is true what they say but only on a land-scale. I wonder is they would do the world at ones, it will still be the same. For one because the competition is then gone.