Designed for high school economics students as a public service project of the American Fletcher National Bank, the booklet examines America's decreasing productivity rate in terms of the efficiency. Natural resources, labor, skilled management, and capital are essential to the productive process. When there is an increase in the cost of the production process without commensurate improvement in productivity, inflation occurs. The resulting sluggishness can only be compensated for by higher prices, thus making American products less competitive in world markets. Economists suggest that the leading causes of decreasing productivity are: (1) rapid growth of service industries; (2) high taxes and low profits; (3) soaring energy costs; (4) high cost of regulation; (5) inadequate support of research; (6) a decline in personal savings; (7) wages rising faster than productivity; and (8) lack of managerial attention to the problem. One approach to increasing productivity is to recognize the importance of continuing education programs to improve skills and techniques for increased production. Accelerated educational-motivational programs for employees in addition to rewarding increased production with higher pay, promotions, and bonuses are also suggested. Also, less resistance to technological innovation is necessary to stimulate production. (LH)