“Yes, the American Economy Is in a Funk — But Not for the Reasons You Think”
From this podcast, I can identify with being a techno-pessimist. There will not be mass unemployment b/c of techno revolution and robots. The progress will be slow, but the slow progress allows for checks and balances. Consequences of business practices and procedures are less destructive to humanity and environment than in years past.
We are intrinsically resourceful and innovative and will find ways to flourish in whatever economic environment we are in.
I am comforted by Robert Gordon’s interpretation of “how innovation and inventions affect the economy, especially the inventions of the past few decades”.
The villain of our economy is the culture to be faster and cheaper, we want to SAVE money and acquire more objects. We have a culture of amassing things, not experiences. We value the perception of others of us over the value of a meaningful exchange of goods and services. Our economy is the result of fast and cheap. We don’t care where it came from or who made it as along as it makes us look good on the outside and create a false sense of security on the inside.
Improvements in efficiency per unit of labor and per unit of machine is called total factor productivity = impact of innovation.
Our economy is measured by total factor productivity – improvements in efficiency per unit of labor and per unit of machine. It has been 1.2 percent a year for the last 10 years. In 10-15 years, it is predicted to be .3 percent per year, which means that as many people will be falling back as there are moving ahead.
Our growth rate is similar to other developed nation’s markets in all but one area, the measurable slowing improvement of educational attainment sets the US apart.
My argument is that economists measure of growth rate is no longer relevant.
(Personal side note: Isn’t this is an exploitative concept? Why would we want to measure progress on the backs of human beings anyway?)