"Meyer also raises the connundrum of all connundrums: the great productivity puzzle. Good to see it is still puzzling everyone the way it is puzzling me. If this continues maybe it will get to rival the 70's Solow paradox. In fact come to think of it maybe we could now rephrase this: productivity improvements are making themselves evident everywhere.........except in the numbers of computers actually being purchased."
Don't forget about the sizable outsourcing/insourcing re-import of productivity - manufacturing and IT. This can only continue to worsen in the OECD nations with China, India, and much of S.E.Asia sitting so low in the currency game. None of these latter nations are creating internal consumer demand markets nearly fast or large enough, or much at all, to alleviate the problems of real missing global demand. They are depending on being re-export nations of global oversupply, yet creating rising price commodity demands for said re-export, and at the same time exporting deflationary and productivity forces to the OECD's - whose balance sheets can only continue to worsen.
Global corporate productivity is also increasing through the recent successes of their comptrollers/treasurers through their trading room activities. Global labor oversupply is also increasing, mainly through India and China, plus others such as Russia, E.Europe, Africa, L.America, etc. - allowing further productivity gains. We have a massive oversupply, lack of demand world continueing to contribute to real global market productivity at the increased expense of real aggregate global credit productivity.
In other words, we march ever closer and further into a real global debt deflationary spiral - without real needed structural reform. Micro-economics will no longer cure the world's massive macro-economic problems of over-supply and under-demand. Only true balance of payments and currency reform solutions are viable - Davidson. Micro solutions is just spinning your wheels on ice in an inferno of hell. ...Link