Maximum prosperity can exist only as the result of maximum productivity. Statement accurate Why or Why not?

Answer 1

In the long term, this statement is pretty close to true (I don't like absolute qualifiers like "only").

Real wages rise when productivity increases --- otherwise you just cause inflation.

Note that my example only occurs for nations that grow in the long run - resource-rich nations that blow through their natural resources in 7 decades but never actually produce or invent anything are not included.

Answer 2

It would seem that this would be so but it is not. There are plenty of examples where prosperity is not gained as a result of productivity. If I owned an oil well while it is a hot commodity it doesnt matter hoe productive or efficient I drill and distribute, the free market determines that the value of the commodity is high and I will be prosperous. Individual productivity is not tied to prosperity gained through good investments - selection and choices but then I can go lay on the beach and prosperity will find me. If the services or goods are in high demand, maximum productivity is not required to realize maximum prosperity (in other words the highest return the market will bear for those goods).

Answer 3

I would have to disagree. Taking the example of a commercial company, if the company produces as much as it possibly can, but it not able to sell what it has produced, then it will in fact suffer a great loss. This is, in large part, why 'just in time' production was brought about. Things are made and delivered as they are needed; no stockpiling of parts/merchandise. The truer statement would be - maximum prosperity can exist only as the result of maximum EFFICIENCY.

Answer 4

C'mon people, the statement is true, in fact it's a tautology. Productivity, no matter in what specific way you measure it, always refers to a ratio of value of output-to-inputs. Given a fixed amount of resources, anything that increase the value of output necessarily increases productivity. And increasing the value of output increases prosperity. It doesn't matter if you are already rich or if you own a highly-valued productive asset: if you increase productivity, you necessarily increase your prosperity.

Prosperity is therefore not maximized unless and until productivity has reached its maximum.

Answer 5

statement not accurate.

while it is possible to achieve productivity at its maximum output, is prosperity connected? no. prosperity is a quality of life, if you maximize your output you may sacrifice your free time, infringing your prosperity, or free time, or happiness.

Answer 6

I disagree, There are very prosperious people that never lift a finger and never have. But i also feel it depends on ones definition of productive.
And there are very productive peoplle that are not prosperious