From BLS DAILY REPORT, THURSDAY, SEPTEMBER 28, 2000:
"Many analysts may have overlooked one of the main drivers of the
productivity gains of the past 5 years: machine tools. The report, which
was conducted by Joel Popkin & Co. suggests that consumers have saved
billions of dollars over the past 5 years because of technological,
material, and process advances in the machines that help make everything
from cars to air conditioners to airplanes. Among the conclusions of the
study -- conducted for the trade group, the Association for Manufacturing
Technology -- advances in machine tools have helped drive down the costs and
enhance the quality and energy efficiency of durable goods like
refrigerators and automobiles. Flat durable goods prices between 1996 and
1999 have saved consumers over $101 billion, the study said, while increased
productivity in durable-goods manufacturing has added $618 billion to GDP
between 1992 and 1998. "Manufacturing has been reinvented," the study said.
"This is the result of a combination of factors but fundamentally has been a
product of improvements in manufacturing technologies." ... Two academic
studies of recent productivity gains have found more than half of the
increase has occurred outside the computers, software, and
telecommunications sectors. Harvard Professor Dale Jorgenson, a co-author
of one of those studies, said in an interview that Popkin's work is
consistent with his own and other academic studies. ... (Wall Street
Journal, page A2)."
Robin Hanson rhanson@gmu.edu http://hanson.gmu.edu
Asst. Prof. Economics, George Mason University
MSN 1D3, Carow Hall, Fairfax VA 22030-4444
703-993-2326 FAX: 703-993-2323
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