Paul Krugman on economics and technology

[MBS]

http://www.nytimes.com/2015/05/25/opinion/paul-krugman-the-big-meh.html?

A growing number of economists, looking at the data on productivity and incomes, are wondering if the technological revolution has been greatly overhyped — and some technologists share their concern. . a funny thing happened on the way to the techno-revolution. We did not, it turned out, get a sustained return to rapid economic progress. Instead, it was more of a one-time spurt, which sputtered out around a decade ago. Since then, we’ve been living in an era of iPhones and iPads and iDontKnows, but even if you adjust for the effects of financial crisis, growth and trends in income have reverted to the sluggishness that characterized the 1970s and 1980s.
. . .
One possibility is that the numbers are missing the reality, especially the benefits of new products and services. I get a lot of pleasure from technology that lets me watch streamed performances by my favorite musicians, but that doesn’t get counted in G.D.P. . . Another possibility is that new technologies are more fun than fundamental. Peter Thiel, one of the founders of PayPal, famously remarked that we wanted flying cars but got 140 characters instead. And he’s not alone in suggesting that information technology that excites the Twittering classes may not be a big deal for the economy as a whole.
. . .
You see, writing and talking breathlessly about how technology changes everything might seem harmless, but, in practice, it acts as a distraction from more mundane issues — and an excuse for handling those issues badly. . .

[CTyankee]

1. My Monday fix in the NYT...love Dr. K with my morning coffee...always a pleasure...

[MBS]

2. . . . .

(tea for me, but same idea)