PRINCIPLE 8: LIFE OF A WATER LEVELS OF RELYING ON PRODUCTION CAPACITY OF GOODS AND SERVICES WHICH COUNTRIES
Most of the difference in living standards caused differences in labor productivity of each country (No. of goods are made in each labor hour of a worker). In these countries, workers are producing goods and services of greater than one unit of time, most people enjoy high standards of living; other countries with inferior productivity, most people face life difficult. In essence, the growth rate of labor productivity of a country decides to growth of average income countries.
The relationship between basic productivity and living standards is quite simple, but it brings a deeper implications far. Thought that any policy will see the impact of how the living standards, the key issue is that it will affect the capacity to produce goods and services like.
For example, one can feel that the league minimum salary lawyers have contributed to raising living standards of American workers in the past century. But the true hero of American workers are the labor productivity of their growing up.
To improve living standards, policy makers should increase labor productivity by ensuring that workers receive well trained, have all the tools needed to produce goods and services and have access to the best available technology.
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