With the American economy posting surprising economic growth numbers amid rapid wage gains and moderating inflation, some economists are wondering whether we are on the cusp of a productivity boom similar to 30 years ago.
Although official productivity data have been volatile since the pandemic began four years ago, the emergence of new technologies like artificial intelligence and the embrace of hybrid work setups are making some economists question whether or not the gains are real and if they can evolve into a lasting boom.
The New York Times breaks down parallels between trends in 1994 and today, including:
The Computer Age vs. the Zoom Age
The Internet vs. Artificial Intelligence
Walmart vs. Internet shopping
Entrepreneurship Booms
Alan Greenspan vs. Jerome H. Powell
While the differences between the two eras make many economists reluctant to say this is a turning point in productivity, the implications of a steady pickup in productivity for the U.S. economy would be huge, essentially allowing companies to pay better wages without having to raise prices or sacrifice profits.
