Understanding the Potential of Digital Technologies on Productivity Growth

Digital technologies, while promising revolutionary changes, have not significantly boosted productivity growth in the US economy, except for a brief surge in the 1990s. Despite the continued hype around digital technologies, productivity growth has mostly remained stagnant. The productivity paradox, as highlighted by economist Robert Solow in 1987, questions the discrepancy between the widespread adoption of computers and the lack of significant productivity increases. The productivity paradox is less surprising when considering the challenges posed by inefficient and subpar computers and software in work settings, negating the perceived revolution.