A hike in labor productivity leads to growth in a worker’s capital amount. A production process depending on hand carved tools and designing amazing items have good productive growth. But it cannot be better than the production processes which have huge number of capital per worker. This fund gathering related to textile factories, steel mills, farms, chemical plants, insurance companies and banks, iron foundries, shopping malls, coal mines, auto plants, chemical plants, building sites have huge labor productivity. This has also contributed to our economy.
If you want to understand about amount of capital invested in anappropriate manner, make sure to look for a movie which is either set in colonial times or at Old West.
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