President Obama said today, in all seriousness, that improving productivity is increasing unemployment. In his interview with Ann Curry on NBC he said, “There are some structural issues with our economy where a lot of businesses have learned to become much more efficient with a lot fewer workers. You see it when you go to a bank and you use an ATM, you don't go to a bank teller, or you go to the airport and you're using a kiosk instead of checking in at the gate."

This shows a frightening ignorance of economics and the job creation process. The Luddite movement began in 1811 when workers in England smashed lace making machines, believing that the increased productivity would put them out of work and decrease the supply of jobs. Nothing could be further from the truth. It is easily seen in the history of the United States. In the early twentieth century 90% of the population live on the farm, providing food to the other 10%. Today, 3% of the population lives on the farm and provides food for us and large parts of the world in addition. This is progress in action.

Because of the increases in productivity, we enjoy electricity, computers, indoor toilets, planes, trains and automobiles. Virtually everything we enjoy, including being able to communicate on this site, has been made possible by increases in productivity. President Obama does not understand this. He understands the economy as a zero sum game. It isn’t and we can all be glad that it is not. Until the President understands this, his ignorance poses a very real threat to our economy. Let’s hope that he has people much brighter than him around him to keep us from a destructive economic policy.