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Productivity Metrics are a Scam

  • Productivity metrics are critiqued for their influence in economic and policy decision-making.
  • Gross Value Added (GVA) serves as a core component in productivity calculations but may not accurately represent value creation.
  • In service-based economies, traditional productivity measures fail to capture the true worth of labor as outputs can be distorted by pricing strategies.
  • The discrepancy in how productivity is assessed raises concerns about the validity of using these metrics to evaluate sectors like finance, potentially overlooking the genuine contributions of essential workers.

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