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Freakonomics Radio

566. Why Is It So Hard (and Expensive) to Build Anything in America?

Freakonomics Radio

Freakonomics Radio + Stitcher

Documentary, Society & Culture

4.632K Ratings

🗓️ 23 November 2023

⏱️ 55 minutes

🧾️ Download transcript

Summary

Most industries have become more productive over time. But not construction! We identify the causes — and possible solutions. (Can you say ... “prefab”?)

Transcript

Click on a timestamp to play from that location

0:00.0

This episode is about a problem. It's a problem that has to do with how we build things in the U.S.

0:10.5

But it's not a new problem. The Department of Housing and Urban Development saw

0:15.4

it coming more than 50 years ago.

0:18.0

There's a report called A Decent Home from 1968, which was commissioned by the Johnson administration,

0:23.2

that basically said that construction productivity in the US had grown

0:27.3

about 2% per year in the 40s and 50s, and had in the 60s flatlined.

0:32.4

That is Ivan Rupnick. He is a professor. and had in the 60s flatlined?

0:32.8

That is Ivan Rupnick.

0:34.4

He is a professor of architecture at Northeastern University.

0:38.0

Productivity, as you probably know,

0:40.0

is how economists measure the relationship between the resources that go into a process, money, time, labor, things like that, and what comes out the other end.

0:51.0

Human kind has become much, much, much more productive over time, although not always and

0:58.1

not in every situation.

1:00.3

Let's say you get a new software program that helps you work faster, maybe even better.

1:06.1

That might lead to a gain in productivity. But if that same program is too complicated or glitchy, you might not get a gain in productivity.

1:16.4

Or maybe the new software is fantastic and fantastically fun and you spend hours doing something other than the work you're supposed to be

1:25.0

doing then your productivity might fall. So the productivity arrow doesn't always

1:30.0

travel in the direction you anticipate. And what happens if productivity declines in an

1:36.1

industry that is absolutely essential to our economy? Here is what that Johnson

1:41.3

Administration report said.

1:43.4

There was a potential for major societal impact,

1:46.1

not just for the construction industry, but for citizens

...

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