Productivity has been on the rise in America and this is going to make the cost of our goods and services more affordable. This will in time promote strong growth. However, one of the downsides of productivity improvement is that it reduces jobs and payroll, leading to some decline in jobs and job creation.
We need to look at the creation of new industries and I believe the growth in renewable energy sources and better utilization of natural gas and coal are the best opportunities we have to create significant numbers of jobs and to reduce our dependence on foreign oil.
Also if we would reform our tax system, we could make doing business in this country even more attractive, but, the productivity increases may be doing much of that right now.
Recovery is coming, but many of the jobs lost in the downturn are going to be gone for ever.
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