high savings rates
Liz has observed that there are certain factors that can affect productivity negatively. One of these factors is the low level of capital funding, which means there is not enough money available to invest in improving productivity. Another factor is the high percentage of inexperienced workers, who may not have the skills or knowledge to contribute effectively to different sectors of the economy. Additionally, the lack of investment in technology can limit the ability to improve output, resulting in stagnation.
Moreover, Liz believes that productivity is directly proportional to the savings rate. This means that if people and companies save more money, the economy can be stimulated through interest rates or government spending. Conversely, if less money is spent on developing new technology, the economy's production may remain stagnant, while the population continues to rise, leading to a shortage of supply.
Furthermore, Liz has noted that a high percentage of inexperienced workers can lead to higher turnover rates, increased hiring and training costs for companies, and reduced per capita income. This is because inexperienced workers may require more time and resources to get up to speed, which can be costly for employers. Additionally, turnover can disrupt workflow and cause delays, which can impact productivity and overall output.