Causes of the significant decrease in productivity growth and dramatic increase in unemployment in the United States since the mid-1960's are examined in order to test the underlying assumption of current economic policies that increasing capital savings and investments will create fuller and more productive employment. Data on trends in employment, productivity growth, and related variables since World War II are presented and general causes reviewed. The conclusion is that causes may differ between economic sectors, and these differences may be explained by shifts in the concentration of capital from industry and nonfinancial commerce and services to oil, gas, and the banks. In the nonmanufacturing sector, growth of capital investment per employee seems to correlate positively with productivity growth and negatively with the unemployment rate. In manufacturing, however, how and where capital is invested seems more important than the amount invested. Alternative capital allocation strategies furthering increased employment and higher productivity may require worker and government participation and should take into account the relationships between higher productivity and higher wages; growth and consumer demand; accumulation by private and government sectors; and the allocation of capital among sunset and sunrise industries and among sectors, regions, and nations. (MJL)