schiffgold.com / BY SCHIFFGOLD / SEPTEMBER 8, 2016
Another bad US economic indicator is becoming a focus for economic policy makers. Last month at the economic symposium at Jackson Hole, Janet Yellen said, “As a society, we should explore ways to raise productivity growth … improving our educational system and investing more in worker training.” Yellen is referring here to the production efficiency that occurs when incoming, better-educated college graduates enter the labor force, bring their new knowledge, and create better processes. This is commonly called the “productivity miracle” and has been a reliable economic phenomenon for 50 years.
Think of the productivity miracle like gaining better human technology. On the whole, better-educated people will create more effective ways of producing things. However, according to a Bloomberg article, productivity miracle levels are starting to flat line due to sluggish enrollment numbers.
In an a familiar tone that sounds like the “new normal” statements of recent policy makers, economists like Harvard’s Dale Jorgenson are predicting the average level of education for U.S. worker will no longer continue to rise in the.“Educational attainment will gradually disappear as a source of economic growth,” Jorgenson states.