Grow the Pie

There is a lot of talk, these days, about jobs and income. It is important stuff.

Here is an important, little secret. Real gains in income cannot sustainably outpace raises in productivity.

Put differently, the only way to grow the economy, and grow incomes, is to increase productivity.

Last week, I wrote an article about excellence. And, striving for excellence is a bona fide path to increased productivity. Not guaranteed, but bona fide.

Allow me to make one prediction. China will not overtake America as the world's economic powerhouse. At least, not any time soon.

It is true that China has grow a lot in recent years. But, the origin of that growth has been playing catch-up.

The Chinese have simply been executing the lessons that Frederick Winslow Taylor taught America more than 100 years ago. Lessons on efficiency and productivity.

In most ways, China is simply playing catch-up by playing copy-cat.

So, again, your income cannot sustainably grow faster than your productivity. And, this is why I write about effectiveness. Because productivity is largely a function of effectiveness.

America is an innovation and entrepreneurship machine. Through innovation, entrepreneurship, and increased effectiveness, America will be hard to touch. And, so will you. If you learn, and execute, the lessons of history.

For more information, grab a copy of this book.