Eduardo Porter of The New York Times argues that “America’s
Best Days May Be Behind it” due to slowed increase in technological process.
The idea comes from Robert J. Gordon, a professor of economics at Northwestern
University who has developed this proposition in a series of research papers
culminating into the book, “The Rise and Fall of American Growth”. In the past fifty years, America has
experienced a slowed increase in life expectancy, and home technology, other
than the internet, has not improved as dramatically. Despite the internet,
total factor productivity rose only at about one third the pace of the previous
five decades. Many other economists are also forecasting slower progress,
suggesting that the burst of innovation from 1920-1970 was a one-time
phenomenon. Business dynamism, measured by the role of new companies in the
economy, along with the size of the work force as baby boomers grow too old,
both seem to be decreasing. The article as whole suggests a decrease in growth
in the upcoming years, and a stagnancy in regards to the standard of living.
The introduction of several measures of economic growth that
I wasn’t familiar with, the factors of the work force that we discussed in
class, and brief discussion of the future of American growth made this an
article that related well to the class and was also thought-provoking.
http://www.nytimes.com/2016/01/20/business/economy/a-somber-view-of-americas-pace-of-progress.html?ref=economy
I find this concept of America being past its best days quite interesting as it has been in the forefront of critic's minds for quite a while now. Although it comes from a fictional TV show, I've always found this speech quite thought-provoking: https://www.youtube.com/watch?v=16K6m3Ua2nw. In it, the main character discusses how the United States has fallen behind other world powers such as China. He mentions how we no longer are striving to constantly better the world, as we have become complacent with our world standing. I do think that part of this, not all, could be due to the aging baby-boomer generation and their decreasing productivity as they get older. The baby-boomers make up a substantial portion of the current US work force and it is possible that they are simply not reaching as far as they used to.
ReplyDeleteI found that the most interesting idea from this article truly lies within perspective. Gordon holds a somewhat pessimistic view of the progress in American innovation, which clearly arches into the idea of what direction America, as a collective, marches in. Professor Mokyr, on the other hand, sees a more positive outlook in the progression of America. The article did present more negative facts ('“People who invest money in the markets are saying the rate of return on capital investments is lower than it was 15 or 30 years ago,”') than positive ones, though it still may be difficult for such predictions, despite history. To me, the most fascinating point was at end of the article, stating that the premier sector of technology continues to grow, yet this does not extend to the portion of the population that is not quite as elite.
ReplyDeleteI agree with Michael Barr's argument about the two different perspectives. However, I believe that both those views are essential though because it gives two sides of an argument. I hope the technology sector continues to grow and in turn extend the portion of the population that is not quite as elite.
ReplyDeleteWhile we may be experiencing a decrease in growth in our technological processes, to go off what Trey said about the baby boomers, maybe the slowed growth is due to the decreased productivity of the older generation which might affect increase in technological advances. As the younger generations age they might be able to provide more significant technological advances than the baby boomer generation.
ReplyDelete