Introduction
Technological advancements have revolutionized economic productivity in the United States. Economic productivity began rising in the mid-90s, which is the exact period when technological advancements were common. The author argues that the explanation for the rapid growth and improvement in the economy of the United States and other developed countries is all tied to information systems and organizational structure technology. In conclusion, the article goes on to identify the factors that contributed to productivity and the comprehensive analysis of each, mentioning the implications the factors would have on future economic development.
Summary
The article’s authors have a strong background in economics and technology; for instance, Dale, a professor and economist at Harvard University, is a leading expert with a vast knowledge of economic growth and productivity. Dale has also served the government as a consultant working with various agencies, such as the U.S. department of commerce and the congressional budget office. On the other side, Kevin Stiroh, an economist and vice president of the federal reserve bank in New York, served as a treasury department consultant. In addition to that, Kevin has also published numerous articles concerning financial growth and development (Shapiro, 2019). To summarize, the authors are scholars vast in economics and technological advancements; the analysis of the economic growth and technological advancements is thus deemed relevant and credible due to their wealth of knowledge and experience in the fields.
The article retrospective Look at the U.S productivity growth resurgence examines the trends in economic growth from the late 90s onwards. The argument that economic growth in the United States was stunted from the 1970s to 1980, until the introduction of the information system, is valid. The article registers factors that immensely contributed to the rapid economic growth and advancements, including changes in work organization powered by technological advancements and investments in information systems. Ultimately, the government played a huge role in promoting economic growth by deriving relevant policies such as enhancing competition and deregulation.
Technological advancement is one of the underrated resources businesses and organizations have; analyzing the spike of growth in economic productivity, it is true to say that technology played a significant role in the resurgence. On the same note, following the economic growth trends since the late 90s, organizations need to be aware of the capabilities of the current technology. Therefore, future economic growth depends on how organizations utilize technological resources (Jorgenson et al., 2018). The trends can be used to forecast growth patterns and possibilities and thus adapt effective strategies that ensure the organizations maintain and increase economic growth. In summary of these findings, technological advancement is a continuous variable that grows relative over time. Organizations thus have to ensure they are always up to date with the innovations to secure an edge over their competition.
Analysis
Advancements and innovation in information technology pioneered economic growth and productivity in the United States from the late 90s, and it is valid to say that information systems have been the primary factor for economic growth. The authors have cited relevant case studies and data to support their claims, including the fact that Information technology investments have the highest return on investments and that the field has been advancing relative to economic growth in the early 90s. in light of these findings, the authors fail to acknowledge the potential drawback of advancements in information technology, such as displacements of employees due to computer automation.
Economic restructuring has contributed to its growth and development over the past years; the authors argue that the shift in the economy, especially the adoption of service-based companies and intangible assets, has been a significant driver in economic growth. The authors support their claims with relevant theories, such as that service-based organizations are more profitable than their manufacturing counterparts. This is true because limitations such as logistics, inventory, and production costs are not included in service-based companies. Considering all this, the authors fail to register the negative impacts of restructuring the economy as it has led to an imbalance in the allocation of economic resources.
Globalization has contributed to economic growth; the authors argue that globalization has significantly affected economic growth. Globalization has made economic growth possible by promoting competition and innovations and opening up new markets for companies to venture into (Fernald, 2022). The argument was validated as imports into the United States have contributed to lower prices, thus triggering competition from internal companies. In light of these findings, the authors do not consider the possible adverse effects of globalization, such as the displacement of workers and violation of human rights.
Conclusion
Technological advancements have pioneered economic productivity in the United States. Jorgenson and Stiroh have argued insightful analysis of the drivers implicating the resurgence in economic growth and productivity. The arguments and claims have been supported with credible resources, such as case studies, as the return on investment in information technology and their economic impacts. In conclusion, as much as the articles have numerous biases in the theories, future research on economic growth should utilize information technology.
References
Fernald, J. (2022). Dale W. Jorgenson: An Intellectual Biography.
Jorgenson, D. W., Ho, M. S., & Stiroh, K. J. (2018). A retrospective Look at the U.S. productivity growth resurgence. Journal of Economic perspectives, 22(1), 3-24.
Shapiro, C. (2019). Protecting competition in the American economy: Merger control, tech titans, labor markets. Journal of Economic Perspectives, 33(3), 69-93.
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