Beyond the Productivity Paradox: Computers are the Catalyst for Bigger Changes

An important question that has been debated for almost a decade is whether computers contribute to productivity growth. Productivity isn't everything. However, as noted by the economist Paul Krugman, in the long run it is almost everything. Productivity growth determines our living standards and the wealth of nations. This is because the amount a nation can consume is ultimately closely tied to what it produces. By the same token, the success of a business generally depends on its ability to deliver more real value for consumers without using more labor, capital or other inputs.