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by INGELRII 247 days ago
The productivity paradox (also the Solow computer paradox) is the business process analysis observation that, as more investment is made in information technology, worker productivity may go down instead of up. This observation has been firmly supported with empirical evidence from the 1970s to the early 1990s.

Before investment in IT became widespread, the expected return on investment in terms of productivity was 3-4%. This average rate developed from the mechanization/automation of the farm and factory sectors. With IT though, the normal return on investment was only 1% from the 1970s to the early 1990s.

https://en.wikipedia.org/wiki/Productivity_paradox

Measurement or Management?: Revisiting the Productivity Paradox of Information Technology. http://www.diw.de/documents/publikationen/73/38739/v_00_4_9....

Then in the 2000 to 2020s productivity slowdown aka productivity paradox 2.0. https://en.wikipedia.org/wiki/Productivity_paradox#2000_to_2...

1 comments

Is this roughly because any edge the computer gives you it also gives your competitor?
that's one potential cause. just like photography, the commoditization of computers reduces barrier to starting businesses. the moat becomes smaller.