> Date: Fri, 20 Sep 1996 10:24:33 -0700 (PDT) > From: Phil Agre <[EMAIL PROTECTED]> > To: Sid Shniad <[EMAIL PROTECTED]> > Subject: productivity > > Innovation is a useful paid publication that summarizes business news... > > Date: Mon, 16 Sep 1996 13:45:53 -0700 > From: [EMAIL PROTECTED] > Subject: INNOVATION, September 16, 1996 > > PRODUCTIVITY CURVE NOT BOOSTED BY TECHNOLOGY & DOWNSIZING > A senior economist from the Federal Reserve Board says that huge investments > in computer technology and corporate restructuring have failed to reverse > the downward trend in U.S. productivity growth, which has hovered around 1% > for the period 1973-1995 The gap between predicted gains and actual numbers > is attributable to "unrealistic expectations of the payoff from > technological changes and corporate restructuring," says Fed economist > William Wascher. "After two decades of research, we can't account for the > decrease in the rate of productivity growth." Despite the focus on building > information technology infrastructure among corporations today, Wascher > notes that technology investment was much more "explosive" in the 1970s. > Computers remain a "relatively minor input in the production process," > accounting for less than 8% of equipment expenditures in 1994. In addition, > corporate restructuring and downsizing have "not lived up to media hype. > History casts doubt that the recent period is unprecedented," says Wascher, > who points out that the 1970s and 1980s also saw periods of mass layoffs and > plant closings. (BNA Daily Report for Executives 10 Sep 96 pC3) >
