The Importance of Productivity for Economic Growth

Productivity is crucial for collective wealth generation and national prosperity. Increasing productivity by generating more output per hour of work is essential for growing wealth and prosperity. It is a simple yet important insight often overlooked amidst day-to-day business cycles. Productivity is measured by output relative to inputs, such as labor productivity. Certain states in the US have above-average productivity and productivity growth, while others lag behind. There is an increasing divergence in productivity levels among different states.