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Suppose firms in the UK are losing productivity because of Facebook. Office staff are spending too long on the social networking site. According to The British Chambers of Commerce employees use Instagram, Facebook, Myspace, and Linkedin for "romancing" and other purposes. On average, employees spend an hour a day on social media. This reduces productivity by 13%. Nearly half of office employees accessed Facebook during work time. Some 82% saw nothing wrong in surfing at work during office hours. In October 2010 Bournemouth City Council in the UK banned staff from accessing Facebook on its computers when it was discovered that they spent, on average, 390 hours on the site every month.
Analyze and answer the following questions:
1. What is meant by productivity?
2. Analyze the impact on a fall in productivity on costs.
3. Analyze the possible consequences for businesses in UK of banning access to Facebook and other social networking sites.
4. Do you think access should be denied?
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In particular, the number of workers is rising slowly, while the number of retirees is rising quickly. Concerned about the future of Social Security, some members of Congress propose a "freeze" on the program.
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