Subscribe in a reader






Buy Conservative Advertising

Wikio - Top Blogs

Find the best blogs at Blogs.com.


Enter your email address:

Delivered by FeedBurner


No one but the author bears any responsibility for the non-advertising content on this blog. AND PLEASE NOTE: the author neither necessarily uses nor endorses any product advertised on this blog.

« "How to Get America Moving Again" | Main | "Why Hoboken is Throwing Away All of its Student Laptops" »

August 10, 2014

"What Today's Economic Gloomsayers Are Missing"

World-class optimism from noted economist Joel Mokyr. I think he is absolutely correct.

So: If everything is so good, why is everything so bad? Why the gloominess of so many of my colleagues? Part of the story is that economists are trained to look at aggregate statistics like GDP per capita and measure for things like "factor productivity." These measures were designed for a steel-and-wheat economy, not one in which information and data are the most dynamic sectors. They mismeasure the contributions of innovation to the economy.

Many new goods and services are expensive to design, but once they work, they can be copied at very low or zero cost. That means they tend to contribute little to measured output even if their impact on consumer welfare is very large. Economic assessment based on aggregates such as gross domestic product will become increasingly misleading, as innovation accelerates. Dealing with altogether new goods and services was not what these numbers were designed for, despite heroic efforts by Bureau of Labor Statistics statisticians.

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.

Powered by TypePad
Member since 07/2003

Shelfari: Book reviews on your book blog