contractors. Others allow recipients to continue there are many different options to learn from. The to receive benefits if they are working part-time or role of government is to identify the best ideas, test starting a business. Governments from Germany to them, and then expand (or discard) them. Nebraska to Minneapolis are considering changes to zoning laws to encourage the construction of Institute measures to increase productivity denser and cheaper housing. Others are looking There can be no inclusive growth without economic at restricting rent increases. Making benefits growth, which means productivity has to grow, too. portable—that is, attached to individuals, rather Productivity was the foundation of the economic than workplaces—is another option. For example, success of the postwar era (Exhibit 6). Led by rising New York State’s Black Car Fund provides workers’ business investment and technology diffusion, compensation, paid for by a fare surcharge, for Germany, Japan, and other war-torn economies built livery and rideshare drivers. Lifelong training world-class industries in sectors ranging from cars accounts, funded by business, government, and and luxury goods to steel and energy. It is still true individuals, could encourage workers to invest in that only through greater productivity do wages and themselves, and also boost productivity. These are living standards improve, particularly in markets just some of the ideas that countries and states are where population growth ranges from little to none. experimenting with; we cite them to illustrate that Web <2020> Exhibit 6 Exhibit <3> of <6> Strong productivity contributed to Japan’s postwar growth, even when Strong productivity contributed to Japan’s postwar growth, even when population growth slowed after 1960. population growth slowed after Real GDP, constant Year-over-year change Real GDP per capita, 1990 $ trillion in population, % constant 1990 $ thousand 1. ‡ 1 0.„ „ 0.ƒ 1 ƒ 0 0 0 19ƒ… 19…0 19†0 19ƒ… 19…0 19†0 19ƒ… 19…0 19†0 9.4 9.6 1.9 1.1 7.4 8.4 GR, % GR, % GR, % 1Compound annual growth rate. Source: Maddison Project Dataase 010 ni ersit o€ ‚roningen 122 What now? Ten actions to emerge stronger in the next normal September 2020
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