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>>vermon+(OP)
This is something that I've always found odd about how the actual value in the economy is tracked. Specifically, how the stock markets continue to rise despite the decline in productivity. If I was told as a shareholder or private owner of a company, that an hour of labor and inputs are making me mess than I was making 20 years ago I would be upset but that doesn't seem to be reflected in the volumes and prices of the stock markets themselves. Why is this case? Is there something I'm missing?

All in all, I hope someone or some firms figure out how to break through the hurdle to automation in industries where it would matter like healthcare. It would be the first step to correct the economy in my opinion.

>>norea-+n8
Specifically, how the stock markets continue to rise despite the decline in productivity.

The stock market rises in nominal dollars, which is meaningless, since that is just a result of monetary inflation. Corporate profits, and personal income invested in the stock market will rise with total nominal national income. In economics terms, nominal national income growth is proportional to the growth in the money supply (M*V=Y). So the growth in the stock market is just a result of the growth of the money supply. It has zippo to do with any real thing like productivity. That is why it is always silly when newscasters report the stock market changes every day, and view it as good when it rises, and bad when it falls. They are essentially cheering on monetary dilution. (But inflation always feels good in the short term, so they aren't entirely wrong to cheer it on, it feels good when the stock market rises, even if the same underlying mechanic is also pushing up your milk price).

>>devinh+Yl
Thanks for clearing that up. It's one area where I can't seem to get a solid grasp on it (I know micro-economics and some macro-economics, but those don't seem to be helpful in understanding financing imo). So basically the stocks will rise regardless of productivity. But then where does productivity come into play? Maintaining the real cost of production below/at a certain threshold regardless of the nominal cost?