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High tech isnít driving the economy any more
Market Watch ^ | March 7, 2014 | Rex Nutting

Posted on 03/07/2014 11:50:20 PM PST by 2ndDivisionVet

The growth rate of high-tech investments has slowed dramatically over the past 10 years, especially since the Great Recession.

Everyone has a pet theory explaining why the economic recovery has been so weak, but here’s one overlooked factor: The productivity revolution driven by computers, software and the Internet is fading, and nothing has yet emerged to take its place as an engine of growth.

For all of the incessant buzz in the markets about the latest tech start-up, few businesses are investing much in high-tech equipment or software. Investments in information processing equipment and software are growing at the slowest pace in decades, just a fraction of the booming growth rates of the late 1990s. See the Bureau of Economc Analysis data.

High-tech investments were a major driver of the economy in the 1980s and 1990s. Businesses were spending a lot on new equipment, software and research, and those investments were paying off by boosting output.

(VIDEO-AT-LINK)

But now 60 years of electronics-led productivity could be grinding to a halt. The slowdown in high-tech investment today means a slower growing economy tomorrow.....

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Culture/Society; Government
KEYWORDS: computers; economy; electronics; internet
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1 posted on 03/07/2014 11:50:21 PM PST by 2ndDivisionVet
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To: 2ndDivisionVet

It’s not that technology still isn’t a driver, but the size of the government is eating up all the gains.


2 posted on 03/07/2014 11:52:00 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: 2ndDivisionVet

Facebook and Twitter aren’t exactly business productivity applications. They’re just time wasters, the same time we would spend in front of the tv if we didn’t have them.


3 posted on 03/07/2014 11:59:52 PM PST by Vince Ferrer
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To: 2ndDivisionVet
The link doesn't redirect to the proper article, but I'll vouch for the gist of this. I've been laid off three times in the last two years, and after beating the bushes quite a bit, I'm about to start my fourth IT job since 2012 for wages that I'd normally not even pull out of my driveway for. Our Halfrican-American-In-Chief and his minions fiddle while Western civilization burns........


4 posted on 03/08/2014 12:01:36 AM PST by Viking2002
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To: Viking2002

Here it is:

http://www.marketwatch.com/story/the-collapse-of-high-tech-is-killing-the-economy-2014-03-07?link=sfmw

It’s that dang “fill-in-the-blank” feature on my PC that does that to me every now and then. Frustrating.


5 posted on 03/08/2014 12:05:04 AM PST by 2ndDivisionVet (I will raise $2M for Sarah Palin's next run, what will you do?)
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To: Jonty30

No, I think it’s real. H.G. Wells saw this in his novel, THINGS TO COME, but he mistakenly identified energy as the devalued commodity. His idea was actually based on the discovery of radioactivity, and he imagined small, cheap, durable energy sources driving trains, automobiles, and factories, and putting 80% of the economy out of business.

In electronic information technology, this has been a cyclic phenomenon, with the boom in the new level, PCs or whatever, taking over where the old level faded and died. But this has to end somewhere doesn’t it? We’re not going to have 10^100 megabytes at 10^100 Hertz on a pinhead. Are we?

So maybe this is it.


6 posted on 03/08/2014 12:09:58 AM PST by dr_lew
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Obamaland!


7 posted on 03/08/2014 12:11:06 AM PST by Gene Eric (Don't be a statist!)
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To: dr_lew

AI and robotics is still in its infancy. When that wave hits, it will change everything as we know it.


8 posted on 03/08/2014 12:16:27 AM PST by DB
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To: dr_lew
H.G. Wells saw this in his novel, THINGS TO COME ...

Sorry, that should be, THE WORLD SET FREE

9 posted on 03/08/2014 12:16:48 AM PST by dr_lew
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To: dr_lew; Jonty30

What the future holds: US futurist Peter Diamandis on the shape of things to come (”Abundance”)
http://www.freerepublic.com/focus/f-news/3123840/posts

Crossbar’s RRAM to boast terabytes of storage, faster write speeds than NAND
http://www.freerepublic.com/focus/f-chat/3052146/posts

Upstart’s ‘FLASH KILLER’ chips pack a terabyte per tiny layer
http://www.freerepublic.com/focus/f-chat/3051777/posts


10 posted on 03/08/2014 12:24:00 AM PST by 2ndDivisionVet (I will raise $2M for Sarah Palin's next run, what will you do?)
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To: 2ndDivisionVet

tech investment isn’t in the US


11 posted on 03/08/2014 12:27:49 AM PST by sten (fighting tyranny never goes out of style)
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To: DB

Could be! Could be! It’s crazy to read and see the fifties and sixties books and TV shows based on AI. The superior machine intelligence has been a stock in trade since the 1940’s I think, and many depictions had them based on vacuum tube technology.

I guess it is starting to happen, but I remember the rhetorical challenge I heard in the 1960’s at Bell Labs, “Let’s see you build a gnat.” Well, how about it?

My own version of that challenge is to build a robot that can play basketball. Boy, that would be something! Can you even imagine it? I don’t think so!


12 posted on 03/08/2014 12:28:01 AM PST by dr_lew
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To: dr_lew

Not necessarily. While computing power will, at some point top out in all practical terms, the applications that can use that computing power is still theoretically unlimited. Until we get homes equipped with computers like the IBM Big Blue, we can’t even say that we’re even close to hitting the limit of computing power.
Much of the reason for the slow down in technological advancement can be chalked up to the simple fact that there are no applications that need much more computing power than what currently exists. However, that could rapidly change if high level artificial intelligence or a home holodeck system were to ever become a reality


13 posted on 03/08/2014 12:30:25 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: Jonty30
Much of the reason for the slow down in technological advancement can be chalked up to the simple fact that there are no applications that need much more computing power than what currently exists.

I think this is entirely wrong. The brute speed, if you will, of advancing computing technology has been the scythe which has mowed down all before it. Case in point, telephones! This was an old technology for establishing "talking paths" which benefited from advancing computing technology by being able to "switch" these talking paths more rapidly and efficiently. All of a sudden though, the computing technology got so fast that it absorbed the transmission technology itself, so that "switching" became obsolete and got pushed aside, even if I, for one, still have a "land line".

So, I assume that applications that "don't need more computing power" will simply be brushed aside by the new realities that this computing power creates.

14 posted on 03/08/2014 12:54:35 AM PST by dr_lew
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To: dr_lew; Jonty30; DB; 2ndDivisionVet

Here’s my take on all this:

I really don’t need all the electronic gadgets. Right now I’m on a large desktop computer and soon may no longer use it as I intend to go off grid.

For years I had no telephone, no television, no camera and had very low blood pressure. Sure enough, as soon as my boss insisted I get a telephone, my blood pressure went up. Dang!

I no longer bother with movies so a DVD player is moot.

Did it ever occur to any of you that there may be lots of people like me out there?


15 posted on 03/08/2014 1:16:51 AM PST by SatinDoll (A NATURAL BORN CITIZEN IS BORN IN THE USA OF USA CITIZEN PARENTS)
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To: SatinDoll

No.


16 posted on 03/08/2014 1:18:32 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: Jonty30

That’s a shame, because I meet them all the time.


17 posted on 03/08/2014 1:22:23 AM PST by SatinDoll (A NATURAL BORN CITIZEN IS BORN IN THE USA OF USA CITIZEN PARENTS)
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To: SatinDoll

I have two terabytes.


18 posted on 03/08/2014 1:26:59 AM PST by dr_lew
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To: SatinDoll

That’s because all the Amish never really go anywhere. :)


19 posted on 03/08/2014 1:28:12 AM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: SatinDoll

I think you’re pulling my leg...

You’ve been on FR for 14 years - no way are just going to walk away now...


20 posted on 03/08/2014 1:41:50 AM PST by DB
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