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The Quest for Economic Leadership

This article examines the work of a few important American writers on productivity. Paul Samuelson, the Nobel Laureate from the Massachusetts Institute of Technology, who (fifteen years ago) deduced from his economic analysis that industrial growth would look after itself, Edward Denison of the Brookings Institution, who by the most detailed and meticulous examination of the data suggests that we really do not understand why the American economy is in an alarming decline; and Robert Hayes and William Abernathy of the Harvard Business School, who now suggest that a principal cause of this may be an obsession with the ’newest and best principles of management’. So mixed a bag of opinion on so vital a topic suggests to the author of the article that perhaps the time has come for the managers themselves to examine the assumptions on which the policies and practices of productivity are based. He is trying to organise an international consortium of those who carry the ultimate responsibilities for wealth creation, and in this he seems to be making progress.