16. The Productivity Watch
According to former Federal Reserve chairman Alan Greenspan,IT investments in the 1990s boosted productivity, which boosted corporate profits, which led to more IT investments, and soon, leading to a nirvana of high growth.Fortune, September 4, 2006
Which of the growth theories that you have studied in this chapter best corresponds to the explanation given by Mr.Greenspan?
- Mr. Greenspan is describing the new growth theory. According to this theory, economic growth will persist indefinitely because of the perpetual pursuit of profit.