| Over time humans have increased their PRODUCTIVITY. Today we are way more productive than we were 30 years ago. So now you might be wondering, what exactly is PRODUCTIVITY? It's the "efficiency with which we convert inputs into outputs" (Naked Economics). | 
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PRODUCTIVITY, in fact, is one of the most important IDEAS in ECONOMICS today. WHY? Because we are producing more things in 24 hours than ever before. As we become more productive we also start to get richer because we are producing more goods and services in a shorter amount of time.
TIME = $MONEY$
The less time we take to produce the more we will produce. Companies want MONEY therefore if they can make their employees more effective they will higher more people so that the company produces more and they can make extra money. However, the companies are not the only ones benefited but the employees too. People will make higher salaries and wedges. As employees are more efficient at work companies higher more productive people, and as more goods are made companies can afford to pay higher salaries/wedges.
TIME = $MONEY$
The less time we take to produce the more we will produce. Companies want MONEY therefore if they can make their employees more effective they will higher more people so that the company produces more and they can make extra money. However, the companies are not the only ones benefited but the employees too. People will make higher salaries and wedges. As employees are more efficient at work companies higher more productive people, and as more goods are made companies can afford to pay higher salaries/wedges.
However, humans are not the only ones making companies more productive but technology too. Technology today is so powerful that it has replaced people (employees) to make work more practical. Technology is replacing low skilled workers with machines. For example, as we walk in CVS we see people paying and packaging all their purchases. With automatic an cashier machines they just scan every product and pass a card or pay in cash and the machine will do the rest. No people are needed. Therefore now-a-days the only people who are worth a huge deal are those EDUCATED, HIGH SKILLED and EFFICIENT. Companies want UNIQUE people not REDUNDANT. So if you want to stand out not only make yourself more productive but scarce. Companies are doing everything to become more PRODUCTIVE.
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So WHY has productivity increased over time?
H U M A N C A P I T A L
People are now investing more in themselves. We are saving money we can spend today, in luxuries or not important things, to spend more in the future like a good education (college). Since we are more educated, healthier and we have a better government so we have better jobs and perform better. Nonetheless HUMAN CAPITAL comes from long term sacrifice of saving up money.
H U M A N C A P I T A L
People are now investing more in themselves. We are saving money we can spend today, in luxuries or not important things, to spend more in the future like a good education (college). Since we are more educated, healthier and we have a better government so we have better jobs and perform better. Nonetheless HUMAN CAPITAL comes from long term sacrifice of saving up money.
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PRODUCTIVITY
it is everything. It is essential for an economy
to be able to turn more in less time.
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