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U.S. Productivity Fcills Behind

Click to see original imageProductivity improvement is a weapon too often overlooked in the continuing fight against inflation that eats away wages and savings and weakens the economy. Rep. Elliott H. Levitas, D-Ga. had some pertinent things to say on the subject in Congress recently pertinent because U. S. productivity leadership has declined since World War Il and the economy has suffered because of it. In 1950. for example, one U. S. worker produced as much as seven workers in Japan and as much as three in Germany, the congressman said. “By 1977 it took fewer than three Japanese or 1.3 Germans to match one American. And by early in 1979 the productivity path of America not only sputtered but showed a downturn.” The search for solutions must begin with understanding the productivity concept. Levitas explained it this way; Productivity is what’s produced compared with what is needed to produce it – input compared with output. It encompasses the contributions of all resources of production: Technology. capital. energy, and the human effort’ and skills needed to manage them. A nation or an industry advances by using less of these resources to turn out more products and services. Historically, America’s ability to produce more in less time and with fewer resources has helped raise our standard of living. The problem comes when increases in output or quality fail to cover increases in the cost of labor or other resources used. This creates inflationary prices because when productivity falters as costs goup, the producer must charge more for his goods or services to stay in business. Lagging American productivity compared with other industrial nations especially has been a problem in the past decade. What can be done to reverse the trend? Over the long haul, certain steps can help such as tax incentives. better training of workers, individual resolve, and fewer governmental restrictions to encourage business enterprise and capital investment. To help promote such concepts. the American Institute of Industrial Engineers will sponsor a National Productivity Improvement Week Oct. 410. Chapters across the country will “spread the word.” Levitas and Rep. John Rhodes, R-Ariz. have introduced a House joint resolution to support the effort. The measure should be passed, of course. It is hoped this will serve to touch off a sustained national drive to accelerate productivity levels.