The Solow Paradox

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Title: The Solow Paradox

Essay Details:

Subject: Miscellaneous

Author: Brian Z

Date: August 13, 2014

Level:

Grade: A

Length: 8 / 2185

Essay text:

Not only has productivity growth in non-durable manufacturing decelerated in 1995-9 compared to 1972-95, but productivity growth in durable manufacturing stripped of computers has decelerated even more." What should be held true - the hype or the dismal statistics? The answer to this question is of crucial importance to economies in transition. If investment in IT (information technology) actually RETARDS growth - then it should be avoided, at least until a functioning marketplace is there to counter its growth suppressing effects. The notion that IT retards growth is counter-intuitive. It would seem that, at the least, computers allow us to do more of the same things faster...

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