The Productivity Deficiency

For eight years before the recessions, from 1998 to 2005, the average annual growth in productivity was 3.2%. And for the eight years from 2009 after the recession, annual productivity growth was 1.2%.  Economists seem to be at a loss as to why productivity has stagnated for the past decade.  Eight years into a recovery, productivity and labor hour increases of significance have been wanting - these are part of the core of GDP growth.  Therefore, where has the growth gone?

We purport the missing productivity and labor hours can be found in culture and government policies as follows:

• Culture - Too many people see work as a noun versus a verb.  I go to work – a place vs. I have come to work – an action.  The latter produces value whereas the former does not.  The idea of “I want, therefore I deserve” permeates through our society, especially with a younger generation of the workforce that was raised with participation trophies and “talking sticks”.  As many companies have discontinued mentoring, the notion of hard work, and starting from the ground and moving up has been lost.  This is prevalent with young people who bounce from job to job because they “haven’t found what they are looking for.”
• Dress – “Dress casual. Think casual. Act casual”.  Dress is a reflection of attitude, drive, discipline and respect.  Athletes wear their uniforms to compete.  Soldiers darn their uniforms into battle.  These are reflections of who you are and the mind-set you are in.  For far too many today, dress is reflective of an afternoon of football in their living room.  Just the notion of “casual” dress says it all.    The process of dressing professionally establishes a mindset of work and overall success.  It is respectful to yourself, family, company and co-workers.  Coming to work in sweats and looking as if you have just rolled out of bed to grant the company the pleasure of your presence, breeds lack of seriousness and productivity.
• Self-esteem vs. Self-confidence – many people are full of self-esteem, which has become an entitlement.  However, self-confidence is wanting as this comes from the task of experiencing failure and success.  These experiences breed wisdom and confidence.  Self-confidence cannot be granted, but must be earned.  This is a huge hurdle for productivity and growth, as companies are filled with individuals with plenty of self-esteem but lack the self-confidence to take the risk to move the company forward.
• Political correctness – Emails need to be written twice.  Once for the purpose of the communication, then again for the wording to make sure nothing that is said can be construed as offensive.  It would be a worthwhile time-impact study to quantify the degradation to productivity as well as innovation cause by political correctness.  This connects back to a culture in which each individual has the need to have their feelings and identity protected.  No longer is the childhood staying true that “words will never hurt me”.
• Government Welfare Obstructs Moving to Work - According to the US Census Bureau, about 50 million people receive government assistance each month.  If the unemployment rate is truly below the level it was when the recession started, then why are seemingly some 13 million more people on food stamps?  The simple answer is that government penalizes those with crushing taxes and diminished benefits who attempt to get off the dole.  People are not stupid and can do the arithmetic that drives the behavior to work part-time to make as much after-taxes as working full-time.  For a swath of people this is a preferred life-style.  If even half of those 13 million would get off the dole, it would add some 6 million workers to the work force - a 5% bump in labor hours.

A new generation of Americans have been raised with self-esteem and sensitivity, but with an attitude of being entitled to a living rather than having to earn one.  We need to be able to reestablish the good examples of respect, manners, hard work, self-dignity and self-reliance that can carry our young, and thus our country, forward into a successful and more productive future.