The Great Productivity Puzzle

I was going to start this column with some new productivity figures from the Bureau of Labor Statistics, but I realized that at least half of the readers would quit right there. Productivity is one of those subjects that fascinates economists and bores, or mystifies, almost everyone else. Instead, let's start with a little story. Imagine that it's 1890 and you and a friend have bought a donkey and cart and started a moving company that transports heavy objects, such as sofas and beds. If you work hard, you can manage two deliveries a day, for each of which you charge a price that, if adjusted for inflation, would amount to fifty-five dollars today. Let's say overhead, such as advertising and food for the donkey, comes to ten dollars a day.