... Europe and
the former Soviet Union, North Africa andthe Middle East, and Sub-Saharan
Africa. The fourteen major economies include the G7 economies listed above
and the developing and transition ... Timmer, and Ypma (2003, updated 2005).
15
See Jorgenson and Motohashi (2005).
16
WITSA stands for the World InformationTechnologyand Services Alliance.
Other important sources of data include the ... Input, and Productivity.
The final step in our analysis of the world growth resurgence is to
describe and characterize the levels of output, input, and productivity for
the world economy, the...
... than a thousand companies and reveals
some interesting results.
The third essay applies the model developed in the second essay to study
the difference in the adoption and pay-off of the Internet ... it actually handled inventory andthe delivery of the
products during the 1998-1999 time period.
The correlation between the two labor measures is calculated. The log
values of these two measures ...
and processes. They categorized firms based on whether they are purely Internet
based, the type of goods sold (digital or tangible), andthe type of electronic
16
labor, and where t is the...
...
Recommended catalogue entry:
Information Technologyandthe Forest Sector. Report by the IUFRO Task Force on InformationTechnologyand the
Forest Sector,” jointly organized by the International Union ... provider and
34
by the owner or manager, the availability of resources, andthe attitude to and knowledge and
acceptance of technology by employees. Externally, the decision to adopt the Internet ... compasses, and
clinometers to gather information about the forest and shared results through paper reports. ICT is
now required to efficiently manage the ecology andeconomy of the forest (Hansen,...
... passenger trips between the offshore islands and Fujian
Province, including 144,234 from the offshore islands to the mainland,
and 8,200 from the mainland to the offshore islands as of February 29,
2004 ... between the two offshore islands andthe mainland. As part of
that expansion of the mini-three links, the Taiwanese government also
expanded the list of products that the offshore islands can ... because of the fundamental role they play in information
technologyand high -technology weaponry. They view the development of
the semiconductor industry as being vital to economic development and
national...
... way
“takingover.”There is little attention given to the more
mundane and immediatethreatsto the jobmarket andthe
overall economy. Perhaps the technologists just assume
that once thetechnology ... little
morebrightly.Theseare the employeesof the automaker
beingrefreshedwithnewlight.Anothertransferofwealth
hastakenplace. The autoworkersinturnmakepurchases
fromotherbusiness,small and large, andthe lightcontin-
uestoparadethrough the tunnel.
We also know that behind the walls of the tunnel
there are more businesses and interconnections ... haveasweanticipaterecovery from the current cri-
sis and in the years and decades ahead? What will the
economy of the futurelooklike?
Among people who work in the field of computer
technology, itisfairlyroutinetospeculateabout the like-
lihoodthatcomputerswillsomedayapproach,orpossibly
evenexceed,humanbeingsingeneralcapability and intel-
ligence....
... mayhaveactuallyin-
creasedforatime,astheywereabletolowertheirprices.
Asaresult,theirprofits, and therefore the wealthoftheir
topemployees and shareholdersincreased.Thesewere the
brighterlightsin the tunnelthatinitiallybecamestronger.
However,asnearlyallbusinessesin the tunnelcontinued
toautomatejobs,atsomepoint the decreasein the num-
berofpotentialcustomersbeganto ... biotechnology and genetics could be considered a
type of information science because it is focused on cataloging and
understanding theinformation inourDNA.
THE LIGHTS IN THE ... on the
seconddayyouhavetwocents and thenfourcentson the
thirdday, and soon.
The firstcharton the nextpageshows the firstfifteen
daysasourpennydoubles.Youcanseethatwestartout
very slowly and then...
... madeeven
morechallengingby the factthat the objectscouldbein
manypossibleorientationsorconfigurations.Consider the
simplecaseofapairofsunglassessittingonatable. The
sunglassesmightbeclosedwith the lensesfacingdown,or
with the lensesup.Orperhaps the glassesareopen with
the lenses oriented vertically. Or maybe one side of the
glassesisopen andthe other closed. And, ofcourse, the
glassescouldberotatedinanydirection. And perhapsthey
are ... securities
werethensoldtobanks and financialinstitutionsallover
the world,with the understandingthattheywereverylow
riskinvestments.
When the subprimeborrowersstarteddefaulting, the
valueof the mortgage-backed securitiesplunged, andthe
derivativesdidnotworkasexpected.Inmanycasesitwas
difficultorimpossibletocalculatetheirvalue.Inaddition,
financialinstitutionshadengagedinmanyothercomplex
interrelationships ... has
quicklyattracted the noticeof the Securities and Exchange
Commission and mayresultinnewregulation.
Astheseexamplesshow,wecanexpectthat the rate
ofchange andthe volatilityofnearlyeverythingaroundus
will...
... demand will in-
crease, andtheeconomy will therefore produce more
goods and services.Inotherwords, the samenumberof
workerswillbeemployedbuttheywillproducemore.
32
The ... collating and faxing in-
formation. The intellectualportionof the job—eitherap-
provingordenying the loan—isprobablyalreadyessential-
lyhandledbyacomputer.Throughout the economy, there
*
Formoreonrobotics and itspotentialimpactonemployment and
on ... food—all of these and countless
thousandsofotherstructures and chemicalsthatcomprise
ourbodies and make usfunctionareproteins. And they
areallconstructedthroughnanotechnology.
Itislikelythat the coming“nanotech”revolutionwill
begin...
... within their capabilities, then how will
they acquire the income necessary to create the demand
thatinturndrivesproduction?Ifweconsider the singular-
ityinthiscontext,thenisitreallysomethingthatwillnec-
essarilypushusforwardexponentially?Orcoulditinac-
tualityleadtorapideconomicdecline?
*
*
The technologistswhospeculateabout the singularitydon’tseemtoo
concerned ... shouldersofAmerican and Europeanconsumers.
And aswehavenotedagain and againinthisbook,those
Westernconsumersalldependonjobs.Ifautomationbe-
ginstodramaticallyimpactemploymentinChina,whileat
the sametimedemanddwindlesin the West and certain-
lyif the catastrophiceventdescribed at the beginning of
thischapteroccurs—thenthiseconomicperpetualmotion
machineisgoingtocollapse.
Givenallthis,whatcanwereallysayabout the future
ofChina?Nearlyafourthof the world’spopulationlives
inChina;therefore,thereisnodoubtthatthiscountrywill
continuetohavesignificant, and perhapsincreasing,influ-
encein the decadestocome.However,simplyextrapolat-
ingcurrenttrendsisveryunlikelytogiveanaccuratepro-
jection.Chinaisgoingtobeheavilyimpactedbyaccelerat-
ing ... purchasing the goods they are producing. Or
eveniftheycanaffordtobuythoseproducts,theyareun-
likelytodo sobecausetheyaremuchmoreinterestedin
THE LIGHTS IN THE TUNNEL...
... to
decline.Rememberthatwearetalkinghereaboutaverage
workers.Toget the graphabove,youmighttake the dis-
tributionofincomesin the UnitedStates and thenelimi-
nateboth the richest andthe poorestpeople.Thengraph
the averageincomeof the remaining“typical”people (the
bulk of consumers) ... by
industries,productionbecomesmoreefficient.Thisresults
insomelossofjobs,butitalsoresultsinlowerpricesfor
goods and services.Inotherwords,itputsmoremoneyin
consumers’ pockets. These consumers then go out and
buyallkindsof things, and so the resultisincreasedde-
mandfor the productsproducedbyalltypesofindustries.
Some ... nation,
youwillinvariablyfindthat the U.S. economy isfarmore
capitalintensive.Ithasbeen the introductionofadvanced
technology that has increased productivity and made the
advancednationsof the worldrich.
The reasonforthisgoesbackto the economists’ex-
planationfor the “Ludditefallacy”whichwediscussedin
the ...
... elimi-
nates the jobsthatprovideincometoconsumers. The es-
sentialideaisthatweshouldimposesomecombinationof
aconsumptiontax and/ oraspecialdirecttaxonbusiness
thatcaptures the incomewhich,inanon-automatedecon-
omy,wouldbepaidoutinwages.Overtime,as the wages
paidtoaverageworkersdecrease(asapercentageofreve-
nue),thesetaxeswouldbegraduallyincreasedtorecapture
atleastaportionofthisincome. The overallobjectiveisto
recapturejust the optimalamountofincome and thenget
itinto the handsofconsumerssothattherewillbesuffi-
cientconsumerdemandtocontinuedriving the economy.
Once the income ... unless there is either existing market de-
mandor the reasonableexpectationofsuchdemandin the
foreseeablefuture. The idea that productionrespondsto
demandisoneof the definingcharacteristicsofcapitalism.
Removing ... corruption
amongofficialsin the country.Thesepeopleveryoftenact
primarilyfortheirownbenefit and, inparticular,inways
that preserve theirpositions and power—rather thanfor
the benefitoftheircountryasawhole.In the finalanaly-
sis,...
... have
strongeducations and training.Thesepeoplearebeneficia-
riesof theinformation age.On the toxicwastelandsideof
the fence, are relatively unskilled workers. These people
THE LIGHTS IN THE ... dramatically
negative.In the UnitedStates,twothirdsofworkers and
thereforeconsumers—donothaveacollegedegree.While
effortstoimproveeducation and trainingarelaudable, the
realityisthatthisisnotlikelytooffset the impactofgeo-
metricallyaccelerating technology. Infact,Ithinkthat the
THE LIGHTS IN THE TUNNEL ... Amazon
havebeenheavilyimpactedbyboth technologyand globa-
lization.Theyoftensurvivebystringingtwoorthreepart
timejobstogetherorworkinlowwagejobswithfewben-
efits. The obvioussolutionisforustofindawaytooffer
thesepeopleadditionaltraining—sotheycanhopoverto
the goodsideof the fence.
Ithinkthat the problemwiththisscenarioisthat the
fenceisgoingtomove, and itmaymoveveryrapidly. The good
sideof the fenceisgoingtocontract, and increasingnum-
bersofwell-educatedworkersaregoingtofindthemselves
suddenlyon the toxicside.AsIpointedoutinChapter2,
we...
... acentrallyplanned economy,
and perhaps most chillingly, the overthrow of govern-
ments and a“dictatorshipof the proletariat.”In the wake
of the collapse of communism, these ideas ... Marx
The centralthesisofthisbookisthat,as technology acce-
lerates, machine automationmay ultimately penetrate the
economy to the extent thatwages no longer provide the
bulkofconsumerswithadequatediscretionaryincome and
confidencein the future.Ifthisissueisnotaddressed, the
resultwillbeadownwardeconomicspiral.
Itmustbeacknowledgedthatthisideaisquitesimilar
to the predictionsthatweremadebyKarlMarxin the mid
tolate1800s.Marxpredictedthatcapitalismwouldsuffer
from ... Amazon
manjudge. The otherparticipantsareanotherperson and
amachine—bothofwhomattempttoconvince the judge
thattheyarehumanbyconductinganormalconversation.
If the judgecan’ttellwhichparticipantiswhich,then the
machineissaidtohavepassed the TuringTest.
The TuringTestisperhaps the mostwell-known and
acceptedmethodformeasuringtruemachineintelligence.
Inpractice, the ruleswouldneedtobefurtherrefined, and
it...
... securities
werethensoldtobanks and financialinstitutionsallover
the world,with the understandingthattheywereverylow
riskinvestments.
When the subprimeborrowersstarteddefaulting, the
valueof the mortgage-backed securitiesplunged, andthe
derivativesdidnotworkasexpected.Inmanycasesitwas
difficultorimpossibletocalculatetheirvalue.Inaddition,
financialinstitutionshadengagedinmanyothercomplex
interrelationships ... madeeven
morechallengingby the factthat the objectscouldbein
manypossibleorientationsorconfigurations.Consider the
simplecaseofapairofsunglassessittingonatable. The
sunglassesmightbeclosedwith the lensesfacingdown,or
with the lensesup.Orperhaps the glassesareopen with
the lenses oriented vertically. Or maybe one side of the
glassesisopen andthe other closed. And, ofcourse, the
glassescouldberotatedinanydirection. And perhapsthey
are ... has
quicklyattracted the noticeof the Securities and Exchange
Commission and mayresultinnewregulation.
Astheseexamplesshow,wecanexpectthat the rate
ofchange andthe volatilityofnearlyeverythingaroundus
will...
... food—all of these and countless
thousandsofotherstructures and chemicalsthatcomprise
ourbodies and make usfunctionareproteins. And they
areallconstructedthroughnanotechnology.
Itislikelythat the coming“nanotech”revolutionwill
begin ... in
Chapter1.Hismainpointisthat,asadvancing technology
increases productivity, prices will fall, demand will in-
crease, andtheeconomy will therefore produce more
goods and services.Inotherwords, the samenumberof
workerswillbeemployedbuttheywillproducemore.
32
The ... collating and faxing in-
formation. The intellectualportionof the job—eitherap-
provingordenying the loan—isprobablyalreadyessential-
lyhandledbyacomputer.Throughout the economy, there
*
Formoreonrobotics and itspotentialimpactonemployment and
on...