Writing in 2016, economist Robert Gordon of Northwestern University stated his views of the effects of information
Question:
Writing in 2016, economist Robert Gordon of Northwestern University stated his views of the effects of information technology on the economy:
We don’t eat computers or wear them or drive to work in them or let them cut our hair. We live in dwelling units that have appliances much like those of the 1950s, and we drive in motor vehicles that perform the same functions as in the 1950s, albeit with more convenience and safety. . . . Most of the economy has already benefited from the Internet and web revolution, and in this sphere of the economic activity, methods of production have been little changed over the past decade. . . . The revolutions in everyday life made possible by e-commerce and search engines were already well established [by 2004].
If Gordon’s observations about the information revolution are correct, what are the implications for future labor productivity growth rates in the United States?
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