December 13, 1999

Information-Age Markets Will Only Work Well with Proper Government Support

An E-conomy?

Is the recent acceleration of American economic growth likely to persist? Could the next generation see the median American material standard of living, as officially measured by the Department of Commerce, rise at something like 3% per year (rather than the 1% or so that we have grown used to since 1973)? And will the next generation see other countries join the world economy's wealthy core not one by one (as Italy joined in the 1960s, Japan in the 1970s, and Korea hopes to join in the next decade) but in battalions?

Maybe.

The next generation might see a return of measured productivity growth to the levels seen back before 1973. It might not. Which will happen depends on the answers to two questions: "Is there really a new economy-an E-conomy-that is materially accelerating economic growth?" and "Will we provide it with the proper support-the proper resources and rules it?"

Posted by DeLong at December 13, 1999 04:13 PM | TrackBack

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