Productivity progress
Progress in productivity means the technological development of more efficient methods of producing economic goods . It becomes visible, for example, through an increase in the amount of product per time or through a reduction in the resources required for production . More technically, the term is also used in the meaning of "rate of growth of productivity used" (where this growth rate is assumed to be greater than zero), such as a formula of wage policy "productivity growth plus inflation ."
Examples
Demographics
A very important factor in a society is its productivity . As much can be distributed as society generates. As our society generates more and more, we can let more people participate in the wealth of society. We can see from various examples that this progress in productivity is still there. A concrete example: A farmer in the 19th century looked after around 1.5 people. Around 1950 a farmer was now caring for around 14 people and in 2001 the ratio rose to 88 people (regardless of surpluses and exports, which made this ratio even higher). This is an increase of over 500%. Similar size shifts can be seen in the goods and services sector. It follows from this: Our society produces more wealth and can therefore provide for a larger “ age burden quotient ” and “ child burden quotient ” . We can also recognize this statement from the living situation in developing and emerging countries. There the average age is lower and the population growth is much higher, so that a “more favorable” per capita ratio prevails. Nevertheless, there is no social expansion or social development there. On the contrary: It is not the relationship between old and young that is the problem for the establishment or expansion of social systems, but rather the low added value and the backward production culture.
Agriculture
An example from agriculture is the production of fertilizer: In inorganic fertilizers or mineral fertilizers, the fertilizing elements are in the form of salts. Inorganic fertilizers are mostly synthesized, i.e. produced chemically, or, less often, obtained from mining. They have made great productivity gains in agriculture possible and are used very widely today. Synthetic fertilizers are problematic in view of the enormous amount of energy required to produce them.
The artificial fertilizer is of historical and philosophical importance because it has refuted historical pessimistic expectations such as those of Thomas Robert Malthus . The expected permanent shortage of food with unrestrained population growth did not occur in the industrialized countries, but neo-Malthusianism still plays a role for the world as a whole.
Financial policy
Monetary limits come into play at best through a wage policy that implements wage increases beyond productivity gains and thus causes cost-induced inflation ( wage-price spiral ). If the central bank reacts to this with a restrictive monetary policy , there will be economically undesirable interest rate increases. A promising global control must therefore be secured in terms of wages and monetary policy. If this succeeds, however , distribution conflicts can largely be avoided.