Chapter 4. Productivity
The only way we create new wealth is by becoming more productive. Tor Dahl insists, "There is no other way. None. Zero."
In chapter 1, we articulated the change in household and government debt since 1973. It was the acceleration of these figures in contrast to the rate of wage increases that led to the financial crisis. Another point highlighted was that between 1973 and 1995 productivity dropped so far as to be less than it was before the Industrial Revolution.
If productivity had increased at 5 percent every year since 1973, the U.S. GDP would have been $44 trillion instead of the $14 trillion recorded at the end of 2008. Per capita income would be $156,000 instead of the observed $46,000. Tor suggests there would have ...