Human productivity is affected by many different things that include labor and capital as inputs. Whereas the output is usually measured in the revenues as well as other GDP components such as the amount of inventory a business has present.
Public policy affects the availability of resources that people need to be productive by changing factors in a community. These include the public policy affecting access to food, housing, health care and education which help everyone to be more productive in any of their daily routines.
If the government lowers the tax rates it will encourage people to save more money and spend less. This will boost savings accounts at banks which then allows them to loan that money out to people wanting to make investments this shows how public policy can promote productivity growth over the long term as the economy grows.
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