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Tuesday, 10 March 2015

As the productivity "pie" expands, there's more wealth in the economy for every sector.

http://www.dailyfinance.com/2010/12/11/americas-economic-illness-baumols-dis/#articleHeader

The two men noted that if productivity and wages rose, for example, by 2.2% a year and costs rose by 2%, then over time, workers would be able to buy more of everything -- more goods and services directly, and more government services paid for with taxes. As the productivity "pie" expands, there's more wealth in the economy for every sector.

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