Slacker theory of labor productivity

In the last ten years or so, we have seen huge strides in labor productivity, thanks in large measure to the deployment and networking of technology.

I believe that reported productivity still vastly understates the true rise productivity, evidenced by the "slacker" phenomenon.

Measures of productivity account for productivity gains accrued to employers, but do not take into account productivity gains that accrue to employees.

Let me illustrate my point.

Let's say Acme Widget, Inc. hires William E. Coyote to do 8 hours of work per day at a given salary. Acme Widget provides Mr. Coyote with a new computer and a fast Internet connection to do this work. Mr. Coyote, a skilled computer worker, is able to complete the 8-hour task in 6 hours, a 2-hour gain in productivity. But Mr. Coyote does not inform his employer of the 2-hour productivity gain. He only discloses a 1-hour gain in productivity.

The management of Acme Widget is delighted with the 1-hour gain in productivity, and give Mr. Coyote a glowing evaluation, but no increase in pay. The 1-hour gain in productivity helps Acme Widget's stock price go up, gets entered into the nation's economic statistics, and Alan Greenspan crows before Congress.

Meanwhile, Mr. Coyote is utilizing his unreported hour to maintain his blog, chat with friends, and write open source software that will eventually put Acme Widget out of business.