Chris Farrell: Productivity growth has led to our economic growth

A "fireside chat" with Donald Luskin, founder of TrendMacro, at the recent CFA Society of Minnesota annual dinner reminded me of the importance of paying attention to productivity. (There was no fireplace but a colorful bouquet of flowers instead.) The CFA Society of Minnesota is one of the oldest chapters of the CFA Institute, issuer of the chartered financial analyst designation.

During his remarks, Luskin made a compelling case for inflation turning into mild deflation — a decline in the overall price level — later this year. He also stressed in his analysis why improvements in productivity weren't ephemeral after emerging from the dramatic economic trauma of the pandemic. In addition to the workforce and business investment gains achieved during the pandemic disruption, he sees the rise of artificial intelligence boosting productivity in the long haul.