ABSTRACT

The third reason is that there is little mileage in fussing about stagnant living standards because there is no obvious cure. The basic answer would be to restore labor productivity to its pre-1973 levels. The recipes for that sound obvious enough-higher savings and investment, better education-but no one knows how to put them into effect. Even so, it is a cop-out for policy makers to refuse to recognize what has happened, and not to devote more of their efforts to rectifying it.