“Productivity and the growth of productivity must be the first economic consideration at all times, not the last. That is the source of technological innovation, jobs and wealth”.
William E. Simon
Essentially, productivity is a ratio to measure how well a country converts input resources into goods and services. The rate at which productivity is measured is by dividing the economic output by the number of hours it takes to produce it. Productivity measurement is especially important because it determines the standard of living of a country. According to Sexton, Gross Domestic Product (GDP) is defined as the value of all final goods and services within a country during a given time period. Consequently, productivity impacts the GDP of countries because if the country is not able to produce goods and services with the resources it has then, GDP would not exist in that country.
In essence, if productivity rates decline, then the economic status of a country would be devastated.
Within this paper, discussions as it relates to productivity will be compared, analyzed and paralleled with the Labor Force placing emphasis on the unemployment rates and Consumer Spending particularly concerning the inflation rates in the Bahamas. Moreover, globalization will also be discussed as a measure of decreasing the rate of inflation and increasing production. Accordingly, the sources researched, analyzed and articulated will demonstrate that productivity within the economy of the Bahamas is of great significance. When productivity is considered as an important part of the economy of the Bahamas, GDP would grow a great deal. It would convey that the Bahamas would have some idea as to how to convert the natural resources into resources that can be used to help ...