The Productivity Puzzle

Irving Wladawsky-Berger

Economic growth has two main components, productivity growth and the growth of the labor force. I ncreasing productivity is thus more crucial than ever to promote economic growth. From 1987 to 2004 US labor productivity grew at a 2.1% The Difficulty of Measuring Productivity.

AI and the Productivity Paradox

Irving Wladawsky-Berger

But, at the same time, productivity growth has significantly declined over the past decade, and income has continued to stagnate for the majority of Americans. Economists have proposed competing explanations for declining productivity growth and so far have failed to reach a consensus.” .

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“Flexible Security”: A Sensible Social Policy for our Digital Age

Irving Wladawsky-Berger

Or, do we also need social policies to promote job creation and assist workers who’ve lost their jobs? One of the Foreign Affairs articles, - The Next Safety Net: Social Policy for a Digital Age by Nicolas Colin and Bruno Palier , - offers some answers to these questions. “As

Global Arbitrage and the Productivity Puzzle

Irving Wladawsky-Berger

A couple of weeks ago I wrote about The Productivity Puzzle , - namely that despite our continuing technology advances, the US and other developed economies have experienced a sharp decline in productivity growth over the past 10 to 15 years.

Cloud, Services and the Transformation of Production

Irving Wladawsky-Berger

Cloud-based services require a much more standardized, mass customized , process oriented, industrialized approach to production , including the application of advanced technologies and rigorous science, engineering and management methodologies. .

AI and the Productivity Paradox

Irving Wladawsky-Berger

But, at the same time, productivity growth has significantly declined over the past decade, and income has continued to stagnate for the majority of Americans. This puzzling contradiction is addressed in Artificial Intelligences and the Modern Productivity Paradox , a working paper recently published by the National Bureau of Economic Research (NBER). Economists have proposed competing explanations for declining productivity growth and so far have failed to reach a consensus.” .

Solow Paradox 2.0: The Lagging Impact of Technology Advances on Productivity Growth

Irving Wladawsky-Berger

Our aging economies are thus dependent on productivity gains to drive long-term economic growth , future prosperity and higher standards of living. Their average productivity growth in the 5 years between 2000 and 2004 was 2.4%. The waning of the mid-1990s productivity boom.

Global Arbitrage and the Productivity Puzzle

Irving Wladawsky-Berger

A couple of weeks ago I wrote about The Productivity Puzzle , - namely that despite our continuing technology advances, the US and other developed economies have experienced a sharp decline in productivity growth over the past 10 to 15 years. So far, though, economists have failed to reach consensus on the causes of the productivity growth slowdown or indeed the relative significance of the various arguments,” wrote McKinsey.

IT, Productivity and Organizational Capital

Irving Wladawsky-Berger

crisis , economic policies that encourage capital investment and job creation must be our top near-term priorities. But, to achieve long term economic growth, as well as gains in our standard of living , the US must also focus on innovation and productivity growth. US labor productivity - “the amount of goods and services that a laborer produces in a given amount of time” - grew at only 1.5% But, starting in the mid 1990s, US labor productivity surged to over 2.5%.

Technology, Media and Culture - the Best of Times or the Worst of Times?

Irving Wladawsky-Berger

USC’s Annenberg Innovation Lab (AIL) was founded in 2010 to study the transformational impact of technology on culture and on the media industries. How can you best understand the impact of disruptive technologies on something as deeply human as culture?

Governance and Pragmatism: Moving Beyond “The Culture of No”

Irving Wladawsky-Berger

Inside IBM's Historic Turnaround ,” former IBM Chairman and CEO Lou Gerstner wrote about the bureaucratic culture that contributed greatly to the near-death experience IBM went through in the early 1990s. Lou called it A Culture of “No.”. “I I think the aspect of IBM’s culture that was the most remarkable to me was the ability of any individual, any team, any division to block agreement or action. Effective governances requires a culture of pragmatism over ideology.

Healthy Nonprofit Work Culture: Shouldn’t That 2 Hour Conference Call Have Been An Email?

Beth Kanter

We all have too many meetings and many organizations have a meeting culture that spawns more meetings, and the cycle of wasted time continues, stealing our creativity, energy, and getting in the way of getting results! Facilitation Leadership Organizational Culture

How Will Covid-19 Transform Urban Life?

Irving Wladawsky-Berger

The results were different for socioeconomic measures associated with people, e.g., wages, patents, educational institutions, entertainment, cultural venues.

System 202

Why Creating Space for Creative Time in the Nonprofit Workplace Improves Productivity

Beth Kanter

The book looks at how individuals can avoid burnout through self-care and how nonprofits can support it – through activities that promote well-being, cultural cues, or an overall strategy. How cultural norms influence participation. Flickr Photo by AstridWestvang.

The Third Wave of the Digital Economy - Promises and Challenges

Irving Wladawsky-Berger

Atkinson is founder and president of the Information Technology and Innovation Foundation (ITIF), a think tank focused on science and technology policy. They need to make the next-wave digital evolution a central policy goal. Support policies where the benefits are largely unequivocal.

Data 221

Does Your Nonprofit Organization’s Culture Eat French Fries for Breakfast?

Beth Kanter

Organizations must support staffs’ self-care efforts through clearly articulate values, policies, and programs. You need to understand whether your organization’s culture is one where happy, healthy can thrive or will be ignored, or even worse ridiculed. Flickr Photo by Kris Krug.

The Urgent Need to Strengthen the Nation’s Resilience

Irving Wladawsky-Berger

These included a significant expansion of government support for scientific research in universities and R&D labs, leading to product innovations from the private sector and better weapons from the defense industry, - and making the US the most prosperous and secure nation in the world.

Issues 223

The (slightly) surprising truth about family-friendly workplaces.

Dan Pink

Personal Productivity (14). The (slightly) surprising truth about family-friendly workplaces Do family-friendly policies like childcare subsidies and job sharing increase productivity and profits? It has had this policy for quite sometime. Dan Pink. Contact.

The MIT Work of the Future Report

Irving Wladawsky-Berger

With this in mind, the work of the future can be shaped beneficially by new policies, renewed support for labor, and reformed institutions, not just new technologies. Policy Proposals for the future.

Report 185

The Challenges of Automation in a Fast Changing Economy

Irving Wladawsky-Berger

The report is divided into two sections: The Case for Action , which explores how automation impacts the economic security and opportunity of American workers, and Policies for Shared Prosperity , which outlines a policy agenda for addressing automation’s challenges and opportunities.

Change 162

Does giving teachers bonuses improve student performance.

Dan Pink

Personal Productivity (14). One of the hottest ideas in education policy these days is tying teacher pay to student performance on standardized tests. It was fed by a policy that had nothing to do with education. Dan Pink. Contact. Follow Dan on Twitter. About Dan.

The Economic Potential of The Internet of Things

Irving Wladawsky-Berger

It applied a bottom-up modeling methodology to estimate the potential economic value of these various applications, including productivity improvements, time savings, better asset utilization and reduced accidents. . Business Organization and Culture. Public Policy.

Data 255

The New, Interdisciplinary, MIT Schwarzman College of Computing

Irving Wladawsky-Berger

transform education and research in public policy and ethical considerations relevant to computing and AI. But there were also talks on the assault on empathy in our friction-free digital culture, on human-machine partnerships in the workplace, and on the role of ethics in AI.

Data 171

A Novel Method for Measuring the Value of Free Digital Services

Irving Wladawsky-Berger

Gross domestic product (GDP) is the basic measure of a country’s overall economic output, based on the market value of all the goods and services the country produces. GDP is essentially a measure of production.

Data 188

The World is Facing a Period of Digital Disorder

Irving Wladawsky-Berger

In the past, the technology industry was largely seen as a positive societal force, enabling billions around the world to rise out of poverty and lead more productive lives. Complex Systems Economic Issues Management and Leadership Political Issues Society and Culture

The Business Value of Resilience

Irving Wladawsky-Berger

The Industrial Revolution was “as much about process innovations that reduced waste and increased productivity as it was about the application of new technologies,” wrote Roger Martin in a recent Harvard Business Review (HBR) article, - The High Price of Efficiency.

Price 192

The World Bank’s Human Capital Index

Irving Wladawsky-Berger

A lower score, say.70, means that the productivity of a child born in that country will be 70% of what could have been achieved with full health and education. or lower, - meaning that they’ll grow up to be, at best, half as productive as they could be.

Data 171

The Impact of AI on the World Economy

Irving Wladawsky-Berger

Overall, the McKinsey models showed that AI has the potential to incrementally add 16 percent or around $13 trillion by 2030 to current global economic output, - an annual average contribution to productivity growth of about 1.2

Data 216

Open Letter on the Digital Economy

Irving Wladawsky-Berger

Over time, these innovations transformed the economy, re-shaped the institutions of society, and ultimately led to the creation of all kinds of new, more productive industries and many new kinds of jobs. .

Issues 277

Globalization in Transition

Irving Wladawsky-Berger

In addition, advances in AI and automation will likely transform labor-intensive production into capital-intensive production, a shift with important implications for low-income countries.

Cost 188

Impact of an Aging Population on Economic Growth and Automation

Irving Wladawsky-Berger

Top economists and policy makers have proposed a number of explanations for the economic slowdown, but in the end, there’s no consensus on the reasons, on how long the slowdown will likely last, or on what to do about it. Economic growth has two main components, productivity growth and the growth of the labor force. Finally, Acemoglu and Restrepo analyzed the relationship between an aging labor force and productivity as measured by the value added per worker.

Where is Technology Taking the Economy

Irving Wladawsky-Berger

We’re at the very start of this new distributive economy era, notes Arthur. “Everything from trade policies to government projects to commercial regulations will in the future be evaluated by distribution. Productivity (GDP per worker) falls too.”.

Why Are We Stuck in a World of Slow Economic Growth? Nobody Seems to Know

Irving Wladawsky-Berger

Others, - most prominently Northwestern University economist Robert Gordon , - have argued that slow growth is the result of a fundamental decline in innovation and productivity. Weak productivity and fewer workers are hits to the supply side of the economy.

Issues 238

Automation and Employment in the 21st Century

Irving Wladawsky-Berger

In January, the McKinsey Global Institute published A Future that Works: Automation, Employment and Productivity , the results of a two year study of automation technologies and their potential impact on jobs over the next several decades. Role of policy-makers. “

Has AI (Finally) Reached a Tipping Point?

Irving Wladawsky-Berger

The first such Study Panel, launched a year ago, was comprised of AI experts from academia, corporate laboratories and industry as well as AI-savvy scholars in law, political science, policy, and economics. AI does not deliver a life-changing product as a bolt from the blue.

Tips 266

A Historical Perspective on the Digital Economy

Irving Wladawsky-Berger

This was followed by the age of steam, railways, iron and coal, starting in 1829; steel, electricity and heavy engineering in 1875; oil, automobiles, and mass production in 1908; and our present ICT-based digital age starting in 1971.

Is Blockchain Now Transitioning to a More Mundane and Useful Era?

Irving Wladawsky-Berger

Pilots will go into production. The article also mentions that two blockchain-based platforms will soon go into production to support the management and trading of digital assets.

How Will AI Likely Impact How We Work, Live and Play?

Irving Wladawsky-Berger

Section II looks into AI’s overall impact on various sectors of the economy, while the third Section, examines AI issues related to public policy.

System 257

The Impact of AI on R&D and Innovation

Irving Wladawsky-Berger

On the positive side, “the resulting explosion in technological opportunities and increased productivity of R&D seem likely to generate economic growth that can eclipse any near-term impact of AI on jobs, organizations, and productivity.”.

The Fourth Industrial Revolution - Risks and Benefits

Irving Wladawsky-Berger

The Second , - a century later, - saw the advent of steel, oil, electricity, mass production and associated inventions including the telephone, light bulbs phonographs and cars. These include: Technology and Productivity Growth.

Bridging the World’s Knowledge Divide: Technology + Competition, Skills and Institutions

Irving Wladawsky-Berger

A few months ago I attended the 12th annual Brookings Blum Roundtable on Global Poverty , a meeting that brought together around 50-60 policy and technical experts from government, academia, business, investors and NGOs.

Skills 214

The Jobs Outlook for 2022

Irving Wladawsky-Berger

The First , - in the last third of the 18th century, - ushered the transition from hand-made goods to mechanized, machine-based production based on based on steam and water power. A few weeks ago, the World Economic Forum (WEF) released The Future of Jobs Report 2018.

Survey 169

Beyond GDP - Measuring Value in a Service-oriented, Information-based, Digital Economy

Irving Wladawsky-Berger

Gross domestic product (GDP) is the basic measure of a country’s overall economic output based on the market value of all the goods and services the country produces. GDP is essentially a measure of production. what are good policies by looking at what policies have promoted.