An Economics Paradox and a Previewby
Here's a question for you all:
Company A has an R&D staff of 1000 engineers designing innovative new products for the future. In a fit of cost-cutting fervor, the management of company A lays off 500 of those engineers, who then find new work building homes (5 bedroom McMansions, mostly).
Question: Does U.S. labor productivity go up or down?
Answer: See my story in the new issue of BW, on the website tonight.
(Think of this as a movie trailer).