April 2, 2011

The Cost of Underestimating Technology

While research is important and I respect the people who devote themselves to doing this, sometimes they risk being disconnected from reality and the consequences associated with it.

From the Wall Street Journal, 2 April 2011--two economists calculated that "$1,700 is the benefit the average American derives from personal computers each year."

They call this the "benefit we get from computers above and beyond what we pay for them."

To me, this figure seems inconsistent with common sense and the realities on the ground.

In an information age, where we are connected virtually 24 x 7 and can download hundreds of thousands of apps for free, endlessly surf the internet, shop and bank online, get much of our entertainment, news, and gaming on the the web, and communicate around the globe by voice, video, and text for the cost on a monthly high speed connection, I say hogwash.

Moreover, we need to factor in that most of us are now information workers (about 20%) or depend on technology in performing our jobs everyday and earning our living.

Just yesterday in fact, the Wall Street Journal reported that more people work for the government (22.5 million--forget the private sector information workers for the moment) than in construction, farming, fishing, forestry, manufacturing, mining, and utilities combined!

Additionally, at work, we are using computers more and more not only for transaction processing, but also for content management, business intelligence, collaboration, mobility (and robotics and artificial intelligence is coming up fast).

Finally, technology enables breakthroughs--in medicine, energy, environment, education, materials sciences, and more--the impact of technology to us is not just now, but in the potential it brings us for further innovations down the road.

So is the benefit that you get from computers less than $5 day?

I know for me that's the understatement of a lifetime.

Apparently by some, technology continues to be misunderstood, be undervalued and therefore potentially risks being underinvested in, which harms our nations competitiveness and our collective future.

As much respect as I have for economics, it doesn't take an economist to think with common business sense.


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