A recent report on US productivity growth confirms that we need more proactive public policies that encourage investment and growth. While many see new technology as responsible for high unemployment now or in the future, the truth is close to the opposite. Employment growth requires new investment and new investment goes hand in hand with productivity growth.
Putting Productivity First
Contrary to the beliefs of some advocates, evidence shows that technological change and productivity growth actually creates jobs in the mid and long term. And given the importance of the high-tech economy on global competitiveness, nations should embrace, not fear, technology.