U.s. Economy : A Sinking Ship

Decent Essays

The U.S. Economy - A Sinking Ship Real economic growth is defined as, “the rate at which a nation 's Gross Domestic product changes or grows from one year to another.” (“Real Economic Growth Rate”). In the U.S, GDP growth rate is currently 1.6%, compared to 1965, when it was 6.5% (Amadeo). Total Factory Productivity, or development of business processes and technological growth, is another measure of economic growth. The average TFP from 1891-1972 was 2.33, where the average TFP today is 1.33 (Matthews). It is apparent that the U.S. economy is not growing the way it once did. There are many reasons it is not doing well, and cannot grow how it used to. These include decreased productivity in the workforce, no new technology, limits on …show more content…

This is negatively affecting workers and the economy. The money businesses are using to buy back their own stock could be going toward purchasing new equipment and facilities or rewarding employees through raises or increased benefits. Without increased wages, the standard of living stagnates or even decreases. In the past, technological revelations would spur investments and purchases of new technology within businesses, resulting in an increase in productivity. The last technological development was in the 1990s, with the IT revolution. From 1996 to 2004, the average Total Factory Productivity was 2.46, which is a record high. It was a large increase from 1972-1976, when the average TFP was 1.33 (Matthews). Technology benefits the economy through direct job creation, contribution to GDP growth, emergence of new industries, increase of efficiency in the workforce, and ways for businesses to reach out to consumers (Kvochko). As seen, technological revolutions encourage economic growth and productivity. In the past decade, no major advances in technology have been made. New innovations, such as smartphone apps, may make everyday tasks easier, but they certainly do not boost the economy. In some ways, they are a distraction to workers. Social media, like Twitter or Facebook, interfere with the focus of workers and their efficiency in completing tasks. Technology that is currently being developed, like

Get Access