James Manyika

If one engine has been expansion in the labor supply and the others in productivity, well, the labor supply engine is kind of dying out or slowing down or, you know, in its output.

So we're going to rely a lot more on productivity growth.

And so where does productivity growth come from?

Well, productivity growth comes from things like technological innovation, innovating how we do things and how we create products and services and all of that.

And technology is a big part of that.

But guess what happens?

One of the things that happens with productivity growth is that the role of technology goes up.

So I come back to my example of the factory.

So if you wanted a highly productive factory, it's likely that your mix of labor inputs and capital inputs, or read that as machinery and equipment, is going to change.

And that's why your factory 100 years ago looks very different than a factory today.

But we need that kind of

technological innovation and productivity to drive the output.

And then the output leads to the output in the sector and ultimately the output in the economy.

So all of that is to say, I don't think we should stop the technological innovation that leads to productivity.

We need productivity growth.

In fact, going forward, we're going to need productivity growth even more.

The question is, how do we make sure that even as we're pursuing that productivity growth that contributes to economic growth, we're also paying attention to how we mitigate or address the impacts on labor and work, which is where most people derive their livelihoods.

So I don't think you want to set up a steady system of incentives that slows down the technological innovation and productivity growth, because otherwise, you know, we're all going to be fighting over a diminishing economic pie.

I think you want to invest in that and continue to drive that.

But at the same time, find ways and think about how to address some of the