The computer era and productivity statistics

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chart-2-us-labour-productivity

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If factory automation, artificial intelligence and data tracking are doing all that much to improve productivity, why don’t we see it in the productivity statistics?

It’s true that productivity is growing, and the continual growth in productivity should not be taken for granted.  Maybe productivity would be less or even fall if not for the computer revolution.

Maybe the computer revolution hasn’t gone far enough as yet.  Maybe, as the linked articles suggest, it is confined to just a few industries—electronics, communications and finance.  Maybe it is offset by disinvestment in American industry, as CEOs spend profits on stock buybacks rather than productivity improvements.

The fact remains that productivity was increasing at a faster rate in the United States before the 1980s, which is when Wired magazine proclaimed a new economy.

LINKS

Technology Isn’t Working by The Economist.

Robots, Growth and Inequality by Andrew Berg, Edward F. Buffie and Luis-Felipe Zanna for the International Monetary Fund.

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