ThoughtStorms Wiki

BradDeLong asks five interesting and relevant questions about

the medium term economic future.

His article and responses are here :

But I'll paraphrase them

  • 1) What should we conclude from a growth in US productivity during the current recessesion?
  • 2) Why are there differences in productivity in the US and Europe, especially in the IT indusrtries
  • 3) How will the current intellectual property wars be resolved?
  • 4) What is the size and salience of our current industrial revolution compared to past industrial revolutions?
  • 5) The developing world: what does the forthcoming transformation of the service sector into a tradeables sector mean for the world economy?

To which his answers are :

  • 1) US productivity is still rising ...
  • 2) Europe either can't or won't restructure to take advantage of productivity increases that IT makes available. Critics point out that a different productivity measures show a much lower gap. (See also DemographicsAndTheDustbinOfHistory)
  • 3) It would be economically advantageous to rethink IP, but current IP holders and their practices are more likely to win (ProductStrategy)
  • 4) "Our modern leading sectors have ten times the technological-revolutionary relative salience of the leading sectors of the classic British industrial revolution."
  • 5) Service jobs will get outsourced to countries which speak appropriate languages. ": if Algerians are not allowed to grow citrus and export it to Europe, they will be able to process French-language documents" This will benefit the developing world greatly. (OffShoring / OutSourcing)

See also de Long's six historical questions :

See also ClassWarBetweenProductsAndServices