Are we in a productivity boom?
The U.S. economy has been marked this year by the paradox of a rising stock market but a slowing labor market. Could the explanation be a productivity boom, led in part by artificial intelligence? That seems possible given Wednesday’s report that the economy grew a robust 4.3% in the third quarter. The report, delayed by the government shutdown, came in well above most forecasts. Consumer confidence is down in surveys, but you wouldn’t know it from the healthy 2.4 percentage-point contribution to third quarter GDP. Health care, prescription drugs and international travel were ...