Blog #2

IT Impact on Economy

     We have all read or heard in the recent years about the economic and unemployment woes. Information technology has helped with these issues; creating jobs and helping the economy grow wealthy.  According to a working study paper, many economic analyst claim that investments made towards IT helped accelerate productivity growth in the 1990s.  IT equipment, over the decade, has been invested into businesses making them more efficient than ever before.  As a result, businesses prosper so shouldn't employees as well?

     One of the key catalysts in making the economy wealthy is productivity, according to economist Erik Brynjolfsson.  Productivity growth is what defines a nation's wealth.   Productivity growth is simply taking the best inputs a business has to maximize the most output it can possibly have.  Information Technology has aided Productivity growth.  It has become an essential part for many organizations.  Although it is important it's not the sole purpose contributing to productivity growth.  Information Technology and the way organizations put IT to work is very important as well.  The people who create the information technology are innovators who design such software and/or hardware.  As well, businesses who use IT to aid in their productivity have to know how to successfully implement the heavily invested IT into their organizational activities.  IT and innovation go hand in hand to determine whether a business is successful or not.  New, fast, more capable IT equipment is invested into businesses making them more efficient than ever before.   Information technology has essentially changed the world and with it progressively changing businesses.  As a result, it has surely stimulated the economy.   Although not all employees benefit from this advancing technology era there's still vast opportunities in the IT industry.

Works Cited:

Brynjolfsson, Erik. "The Economic Impact of Information Technology." Cra.org. Computing Community Consortium, 16 Feb. 2012. Web. 31 Aug. 2013. <http://www.cra.org/ccc/component/content/article/312-the-economic-impact-of-information-technology>.

Bartel, Ann P., Casey Ichniowski, and Kathryn L. Shaw. "HOW DOES INFORMATION TECHNOLOGY REALLY AFFECT PRODUCTIVITY?" Nber.org. National Bureau of Economic Research, Nov. 2005. Web. 1 Sept. 2013. <http://www.nber.org/papers/w11773.pdf?new_window=1>.