Quote to better understand Productivity

“Stressing output is the key to improving productivity, while looking to increase activity can result in just the opposite.”

Paul Gauguin

Policy seeks to increase activity in spite of weak effective demand for output. So is it any surprise that zero-lower-bound monetary policy has not normalized the economy?

If only economists would understand Effective Demand as a limit upon utilization of labor and capital… then they would understand stagnant productivity.