Recently, Robert Charette penned a blog post on IEEE Spectrum titled “The STEM Crisis is a Myth.” However, Mr. Charette’s argument is based on flawed analysis and faulty assumptions. America does face a STEM shortage in key industries and if we do not enact reforms to address this we will continue to fall behind our global competitors.
Technology does not Eliminate Jobs, it Creates Them
Virtually all the scholarly economic research on the question of jobs and productivity finds that higher productivity does not lead to fewer jobs. Higher productivity makes products or services cheaper and consumers then are able to use those savings to buy other goods and services, helping create jobs. In many cases the cause of stagnant growth is too little, not too much, technology and automation, which makes industries less competitive in global markets, leading to job loss, less spending and investment, and a vicious cycle of stagnation.
Could a Fed Under Larry Summers Worsen America’s Investment Drought?
The question of who will replace outgoing Federal Reserve Chairman Ben Bernanke is important, not simply because the Fed plays a central role in monetary policy and banking system oversight, but because of policymakers’ reliance on the chair as a sage voice on broader economic policy.