Why It's So Hard to Raise Productivity: A Debate

Bloomberg View recently ran a series of columns about productivity. Bloomberg View columnists Tyler Cowen and Noah Smith recently met online to debate whether it’s slowing down, and why and what if anything can be done about it.

Smith: In many economic models, there’s an idea that productivity is governed mostly by random, external factors -- the march of science and technology, population aging, etc. And many economists’ intuition tells them that there’s little the government can do to help besides adopt a light regulatory touch and lower taxes. I want to push back against this pessimism. I think there’s a fair amount the government really can do to boost productivity growth in the U.S. and other advanced economies right now.