It is a well-known old thesis that an increase in labour productivity leads to an increase in economic " welfare." Assuming for a while that the meaning of these two concepts is clear, we may say that the statement is correct for a Robinson Crusoe economy as we know it from our books. If Crusoe can get more products for the same effort, then probably he will shorten somewhat his working-day and get more products, and by doing so feel happier. The statement seems guaranteed for an economy : (i)without foreign trade, (ii) without working-hours regulations, (iii) without problems of capital scarcity and (iv) without monetary complications.

Articles (Jan Tinbergen)
The Economic Journal
Erasmus School of Economics

Tinbergen, J. (1952). The Influence of Productivity on Economic Welfare. The Economic Journal. Retrieved from