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The New Economy's Not So New.(Brief Article)
The New Economy's Not So New Timothy Taylor, "Thinking About a `New Economy,'" in The Public Interest (Spring 2001), 1112 Sixteenth Street N.W. #530, Washington, D.C. 20036.
Journal of Economic Perspectives managing editor Taylor believes the argument that computers have instituted dramatic changes in the economy "appears overblown."
Taylor argues it's important to examine productivity growth. Between 1950 and 1975, productivity increased, on average, by 3 percent per year, thanks to new technologies, falling tariffs, and increased consumer demand. But between 1973 and 1995, productivity shrunk to an average annual increase of only 1.4 percent. From 1995-2000, however, productivity went back up to an average annual rise of 2.9 percent.
Economists debate the reason for this. One cause of the revival appears to be the 400 percent increase businesses made in computer spending. Another ...
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Source: HighBeam Research, The New Economy's Not So New.(Brief Article)