Why Is Productivity So Weak? Three Theories

5/9/2016

This article from The New York Times explores the reasons behind the weakness in productivity growth in recent years. It presents three theories that attempt to explain this phenomenon: (1) Measurement issues, suggesting that traditional measures of productivity are not capturing the full extent of technological advancements; (2) Mismeasurement of digital goods and services, arguing that the increasing importance of the digital economy is not accurately reflected in productivity measures; and (3) Delayed effects of technological advancements, positing that it takes time for businesses to fully utilize and benefit from new technologies. The article dives into each theory, presenting evidence and expert opinions to provide a comprehensive analysis of the productivity slowdown.

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