Red Herring: Generation now gets
Red Herring: Generation now gets up to speedDuring the first quarter of this year, while technology investors were fretting over the Nasdaq's slump, something else was happening that hadn't happened in five years: the output per hour of U.S. workers in the nonfarm business sector (the traditional measure of productivity) was lower than in the previous quarter -- 1.2 percent lower, to be exact. When word of this development got out in May, it sent economy watchers into a tizzy, reigniting long-standing arguments about whether investments in technology make companies more productive and whether these incremental improvements, in turn, produce a sustainable rate of productivity growth for the U.S. economy.
Permalink | Monday, July 30, 2001
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