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Productivity Soars

by The Investment U Research Team

In a bit of really good news, productivity jumped in the second quarter to 6.4% annually. This marks the highest productivity gain in nearly six years. The reasons why are simple, after you let half your employees go, the ones left have to do their work.

The result is productivity increases: fewer people doing more work.

And it’s a good thing. Productivity gains are what led to huge economic expansions after WWI, WWII and the dot.com fallout. In addition, productivity increases also mark the end of recessionary periods. In short, higher productivity is a good thing.

Speaking of productivity, General Motors announced that it would begin selling vehicles in California through eBAY (Nasdaq: EBAY). Unfortunately, this still doesn’t change the hegemony of dealerships and their control of the local markets, but it does mark a step in the right direction.

Had this announcement said that individuals could buy directly from GM – cutting out the dealership middleman – then we’d be breaking new ground. But while that may not be the case, more importantly, it shows that GM is starting to think a little harder on improving their business.

Symbols mentioned in this article: EBAY

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