Does Productivity Influence Profit? --Dickeson

Increased productivity doesn't translate directly to increased profits.

"The main cause is a profound misunderstanding of the relationship between productivity and profits. Everyone from Alan Greenspan and Wall Street economists to corporate chieftains and financial journalists made the assumption that higher productivity and new technology would inevitably translate into higher profits." (From the cover story of Business Week, November 4, 2002, pg. 108, "The Painful Truth About Profits." )