“When the chairman talks, people listen.” This was Bill Clinton’s praise for Alan Greenspan. One of my favorite books, Capitalism in America, holds a special place in my library—I bought both a hard copy and an audiobook version. I’ve listened to the audio more than ten times, often during bike rides over the past two years.
What impresses me most is Greenspan’s discussion on the importance of productivity as the key driver of growth and wealth.
In the aftermath of Covid-19, fiscal and monetary stimulus have contributed to GDP growth, but productivity has suffered. The shift to remote work represents a setback for human evolution; ironically, after millions of years of progress, we find ourselves isolated. Companies are missing the collaborative environment that in-person interactions foster. While individuals may produce more, collectively we are producing less.
Employees have lost their sense of belonging in the workplace due to open-concept offices and flexible arrangements. Salary increases in response to high inflation have not translated into productivity gains in goods and services. Moreover, young people face challenges in finding jobs, and the infusion of new talent, ideas, and technology—crucial for driving productivity—has stagnated.
As I write this, North American markets have plummeted by 2-3%, and I’m watching Asian markets follow suit. The prevailing narrative emphasizes economic concerns where productivity is at risk.
