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    >Consider this: Phil, a carpenter who builds homes, buys a new, compressed-air nailing gun, and now frames a house in 18 and a half day
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    Frankfurt airport departure lounge. Full of western tech executives, each with an open laptop. They're all from different companies, all travelling separately. But one particular subject is making them feel like they're old college buddies, and they're networking like a swarm of honeybees.Increased productivity means people like Jane and Phil earn effectively higher wages than their parents.

    Here's why: Every time a company makes an improvement, a productivity improvement, it increases its value and its income. Whether it reduces a cost or adds value for which consumers will pay more, it increases its earnings.

    Some of those increased earnings go to higher (real) wages for employees, some goes to investors, and some goes back into improving the business. When we say real wages, we mean after inflation.

    Consider this: Phil, a carpenter who builds homes, buys a new, compressed-air nailing gun, and now frames a house in 18 and a half days

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    company makes an improvement, a productivity improvement, it increases its value and its income. Whether it reduces a cost or adds value for which consumers will pay more, it increases its earnings.

    Some of those increased earnings go to higher (real) wages for employees, some goes to investors, and some goes back into improving the business. When we say real wages, we mean after inflation.

    Consider this: Phil, a carpenter who builds homes, buys a new, compressed-air nailing gun, and now frames a house in 18 and a half day

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    ue for which consumers will pay more, it increases its earnings.

    Some of those increased earnings go to higher (real) wages for employees, some goes to investors, and some goes back into improving the business. When we say real wages, we mean after inflation.

    Consider this: Phil, a carpenter who builds homes, buys a new, compressed-air nailing gun, and now frames a house in 18 and a half day

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    ployees, some goes to investors, and some goes back into improving the business. When we say real wages, we mean after inflation.

    Consider this: Phil, a carpenter who builds homes, buys a new, compressed-air nailing gun, and now frames a house in 18 and a half day

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    >Consider this: Phil, a carpenter who builds homes, buys a new, compressed-air nailing gun, and now frames a house in 18 and a half days, rather than 19 days as he did with his old nailing gun. He still gets paid the same amount for framing a house, but his productivity went up, so he gains (in effect) a half day's pay. Part of that gain helps pay for the new nailing gun, part goes toward other new tools, and part goes into his pocket since he's an employee and owner of the business.

    In time, of course, all Phil's competitors will close this productivity gap by getting new nailing guns of their own, and that will push down the price that homeowners pay for framin

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