From an economic perspective productivity is defined as the creation of value isn't it? Then if you "improve productivity" and does not create value in the end you're no improving productivity at all.
Productivity is defined revenue per worker hour. And we know worker hours are going down as there are fewer workers with the layoffs.
It does depend on how you define productivity. But the way it's commonly used is "I'm going faster, personally, with these tools."
The thing people I think have a hard time seeing is that "I go faster" does not mean "more features get finished".
It's a scale issue, and one scale is better than the other. People only pay for finished features, they do not pay for how much code you emit.