Alan, Greenspan, (Chairman Federal Reserve Bank, USA) defined: “Computers have created an enormous new capacity to capture, analyse and disseminate information…indeed it is the proliferation of information technology that throughout the economy that makes the current period so different from the preceding decades.” There are two s

The invention of the Web and the rapid decline in computer prices stimulated a massive wave of expenditure on computers, peripherals and software. In my view, this brought out a wide investment in IT industry. “An important fact to remember is that economy wide investment in computers grew at 20 percent before 1995 and at 40 percent after 1995.” (Robert Gordon, 2001) As a result, the economy growth after 1995 is faster than before 1995. From the bar chart of ICT expenditures of US, we can find that the US expenditures on ICT industry increased notably from 550,000 million in 1996 to nearly 820,000 million in 2000. Within the recent 5 years, US investment on IT industry went up 1.5 times in comparison of preceded years and the PC owner per 1,000 increased 1.8 times from 1996 to 2000. At the meantime, the growth of mainlines and mobiles rose stably. It is the enormous investment on ICT spurred the US economic growth in the past a few years.

“1. There has been for some years a sharp rise in the rate of productivity growth over historical levels: between 1995-99, US productivity grew at 2.6% per annum, compared to 1.4% per annum 1974-90.

Some topics in this essay:
Robert Gordon, COMING INTRODUCTION, Productivity Paradox, Bank USA, Output Growth, ANALYSIS ECONOMY, Pentium IV, Labour Services, MIT USA, Reserve Bank, output growth, gordon 2001, robert gordon, robert gordon 2001, growth 1995, federal reserve, information technology, economic growth, 1995 2000, federal reserve bank, share market, growth productivity, economic rapid growth, economic growth 1995, contributions output growth,