has made thus far to reduce the U.S. unemployment rate can be doubly recommended because they have the potential to improve U.S. productivity growth.
Before concluding this chapter, it is worth noting that some economists already see evidence that increasing productivity growth in the late 1980s and early 1990s has reduced the U.S. NAIRU. Robert Gordon, for one, has recently suggested that increasing productivity has helped reduce the NAIRU from 6 to 5.5 percent. Many businesspeople support this viewpoint. Other economists are not yet ready to say that productivity growth has increased enough to reduce the NAIRU significantly. 7 Whether increasing productivity has or has not already reduced the NAIRU, we can be optimistic that if productivity growth continues to increase the NAIRU will come down.