Well, no gain without pain, they say. But what about pain without gain? Everywhere you go in America, you hear tales of corporate revival. What is harder to establish is whether the productivity revolution that businessmen assume they are presiding over is for real.

　　The official statistics are mildly discouraging. They show that, if you lump manufacturing and services together, productivity has grown on average by 1.2% since 1987. That is somewhat faster than the average during the previous decade. And since 1991, productivity has increased by about 2% a year, which is more than twice the 1978 87 average. The trouble is that part of the recent acceleration is due to the usual rebound that occurs at this point in a business cycle, and so is not conclusive evidence of a revival in the underlying trend. There is, as Robert Rubin, the treasury secretary, says, a “disjunction” between the mass of business anecdote that points to a leap in productivity and the picture reflected by the statistics.

　　Some of this can be easily explained. New ways of organizing the workplace all that re engineering and downsizing - are only one contribution to the overall productivity of an economy, which is driven by many other factors such as joint investment in equipment and machinery, new technology, and investment in education and training. Moreover, most of the changes that companies make are intended to keep them profitable, and this need not always mean increasing productivity: switching to new markets or improving quality can matter just as much.

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