Alfred and Andrew

Alfred Krupp had a 65-year head-start on Andrew Carnegie with regard to steel production but, by the 1890s, Carnegie's Homestead Works plant in Pittsburgh had 11 times the labor productivity as Krupp's Steelwerks plant in Essen, Germany.

Carnegie employed 4000 workers and Krupp employed 15,000 -- yet the Carnegie plant outproduced the Krupps plant by a factor of three (11 times the labor productivity). 

What explains this 11-fold difference is the different levels of economic freedom in Germany and the US at the time. The US had sound money, low regulations, almost totally-private provision of services, and at least relatively free trade.

Other instances of an uncrossable chasm of labor productivity growth come from history.

For instance, in The Turning Point: Revitalizing the Soviet Economy [1], Shmelev and Polov cite that, to make a ton of copper, the Soviet Union used up 1000 kilowatt-hours of electrical energy -- whereas West Germany only needed 300 kilowatt-hours to make the same ton of copper.

Looking at East and Central Europe in the 1990s [2], privatized firms had 7% annual labor productity growth and state-owned firms had -0.2%. 

Productivity growth in privatized firms is always at least triple that of state-owned firms.

Economic collectivists behind the current "Great Reset" around the world either do not understand or do not care about the vital importance of economic freedom. The world they push for is one of poverty and strife.

Economic laws are similar to physical laws in that you can't get away with breaking them, but end up breaking yourself against them. If you attempt to violate the law of gravity by walking off a cliff as they do in animated cartoons, you plummet to your death.

If you attempt to violate economic laws with a Great Communist/Globalist "Reset" -- then many millions, and maybe billions, will be thrust into poverty and despair. 

The "Reset" they want is a world with -0.2% productivity growth -- where things overall get worse and worse as time goes by (while cronies progressively enrich themselves with a loot-n-grab mentality).

It is a philosophy of thieves.

A better philosophy is a philosophy of sound money (no deficit spending), low or no government regulation, almost totally-private provision of services, and relatively free trade.

Sources

[1] The Turning Point: Revitalizing the Soviet Economy. N. Shmelev, V. Popov. Published 1990.

DOI:10.5860/choice.27-5229Corpus ID: 108550812

Available: semanticscholar.org/paper/The-Turning-Point%3A-Revitalizing-the-Soviet-Economy-Shmelev-Popov/221bb9595b3d086a3d0245bcc4fce5327e56484b

[2] Pohl, Gerhard and Anderson, Robert E. and Claessens, Stijn and Djankov, Simeon, Privatization and Restructuring in Central and Eastern Europe: Evidence and Policy Options (May 1997). Available at SSRN: https://ssrn.com/abstract=37369 or http://dx.doi.org/10.2139/ssrn.37369

Image Attribution

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