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March 28, 2005

Will Somebody, Anybody Please Brief John Snow?

Bloomberg reports:

Bloomberg.com: News & Commentary: Productivity: Treasury's Snow says high stock-market returns will be possible because gains in productivity -- or output per worker -- will continue to be strong, offsetting slowing population growth. GDP growth is a function of both growth in the workforce and productivity, he said in a March 23 interview. ``Productivity stays strong, and productivity per capita remains high,'' predicted Snow, who has a Ph.D. in economics. ``And it's productivity per capita that drives returns on assets.''

Yet the Social Security Administration expects productivity growth to plummet in the coming years, falling from last year's 4.1 percent gain to about 2.1 percent starting in 2010, according to the agency trustees' report released March 23....

I pity Mark Warshawsky. I know he's doing his best, but it looks like a very hard job indeed.

Posted by DeLong at March 28, 2005 07:15 PM