The Impact of AI on Labor Productivity and Growth
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In this episode of the Metrics Brothers podcast, Ray Rike and Dave Kellogg tackle one of the most critical yet misunderstood metrics in the U.S. economy: Labor Productivity. Amidst the rapid rise of Artificial Intelligence, the "Metrics Brothers" break down how productivity is officially measured by the Bureau of Labor Statistics and why historical technology booms, from SaaS to Cloud, haven't always moved productivity growth as much as expected.
Key Takeaways: A deep dive into the ratio of economic output per hour worked, including what the BLS excludes (farms and government) and the nuances of white-collar labor tracking.
- Historical Trends: A comparison of the post-war boom versus the "SaaS era," exploring why the last 20 years have seen a 66% relative decrease in productivity growth despite trillions in tech investment.
- The AI Impact: Three potential scenarios for the future of work, from "exploding output" to "labor displacement," and why AI might fundamentally remake work in ways the Cloud never did.
- Global Benchmarking: How the U.S. stacks up against leaders like Ireland and Norway in output per hour.
Why Listen? Whether you are a SaaS leader, investor, or white-collar professional, this episode provides a roadmap for staying on the "right side of the divide" in the upcoming AI-driven economic shift.
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