The latest research on low productivity says technology hasn’t helped much
Acc. to new researches from a Federal Reserve economist’s team, an indicator key of this long term vibrancy of our economy, labor productivity, is not only weak due to inaccurate government statistics or the failure to account for rise of the Google, Face book and the web /Internet.
Productivity of U.S., or the output per hour of labor, is being weak over the past decade, rising a meager 0.7% for all of the 2015. This is down from the 2.7% seen after the World War II and through the mid 1970s and during the tech boom of the mid 1990s through 2005 was 3%.All things go equally, that slower the productivity means slower the growth and living standards of people.
Economists have been debating on the causes and even the accuracy of this type of slowdown in productivity, for years. From any one skeptics common explanation is that government statistics don’t capture/ or consider recent innovations such as Google, Face book or the web/ Internet.
But in published research, for a conference upcoming next week at the Brookings Institution, an economist at the Fed, David Byrne, other an economist at the San Francisco Fed, John Femald, and the International Monetary Fund, Marshall Reinsdorf0, argues on the Google and Face book technologies are more akin to television and what all people do in the free time. So it concludes that these developments don’t impact the business productivity at all that much.
The researchers also said that there will be another wave of the IT, information technology revolution from the things like cloud computing, the Internet of things, and the radical increase in mobility which is represented by smart phones.
The paper concluded that since the early 1970s, the modest and incremental productivity growth has more often been the norm and the researchers also said that they experimented with new measures for the computers and communications equipment which the government does not use and on balance, using the measurements, the labor productivity slows down is modestly very larger.