[LINK] Digital Economy Has Arrived, [USA] Commerce Department Says
Wed, 07 Jun 2000 11:42:25 +1000
Remind me again how many times IT was mentioned in the recent
New York Times
Digital Economy Has Arrived, Commerce Department Says
By JERI CLAUSING
WASHINGTON -- In its third annual report on the economic effect of
computers and the Internet, the Commerce Department on Monday said that the
information technology industry is the No. 1 driver of the American
The report showed that the benefits of information technology "are quickly
spreading across the board, and eventually will touch every business, from
the smallest mom-and-pop shop to the biggest Fortune 100," said William M.
Daley, the Secretary of Commerce.
"The first two reports were called the 'The Emerging Digital Economy,'" he
said. "Today, after just 26 months, we dropped the 'emerging,' because it's
here. In fact, it has become the driving force of the American Economy."
Over the last five years, technology industries accounted for a third of
economic growth in the United States, despite the fact that their share of
economic output is just 8 percent, the report shows.
The report also lays out the numbers to prove that technology is making the
country more productive, lowering inflation and creating high-paying jobs
at a rapid pace.
Among the report's key findings:
-- Computer prices have plummeted 26 percent a year for the last five
years. The lower prices and technological advancements have spurred
business investment in hardware and software.
-- Real investment in information technology doubled between 1995 and 1999,
to $510 billion from $243 billion.
-- Technology industries have been a major source of new research
investment. In 1998, the industries invested $45 billion in research and
development, accounting for nearly one-third of all company-financed
research and development.
-- Falling prices for electronic and computer equipment have pulled down
inflation by half a percentage point per year.
-- The average salary for high-tech jobs is $58,000 a year, 85 percent
higher than the average for the private sector as a whole.
-- The number of people in the world with Internet access soared 78 percent
in the last year to 304 million. That represents a hundred-fold increase
The Information Technology Industry Association in Washington, a key trade
association and lobbying group, applauded the report as further evidence
that information technology is boosting the economy, increasing
productivity and giving consumers more choices at lower costs.
"This report helps us better tell the positive story of how technology is
improving the way people live, work and play," said Phil Bond, senior vice
president of government affairs for the group.
"We believe that when members of Congress better understand the growing
impact technology is having on consumers, job creation and our economy,
then they will make more informed policy decisions," Bond said. "This
report will help illustrate the impact of our industry."
Little problems are big problems for little minds
-- Tom Zimmerman