Question: An article in the New York Times notes that since 2001 Italy has had the lowest rate of growth in labor productivity among European countries

An article in the New York Times notes that since 2001 Italy has had the lowest rate of growth in labor productivity among European countries that use the euro common currency. The article quoted Italy's economy minister as saying, "The real tragedy for Italy is falling productivity." At the time the minister made these remarks, the unemployment rate in Italy was greater than 12 percent-more than twice the rate in Germany, the United Kingdom, or the United States. Despite the high unemployment rate, why might Italy's economy minister call low productivity growth rates "the real tragedy"?

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