US Economy Likely to Experience Productivity Boom
With social distancing being the need of the hour during the Covid-19 pandemic, the method of working has changed drastically. There have been changes made to businesses and companies modus operandi on a large scale. While many have transferred onto the remote work from the home workforce, companies have begun to enforce the use of robots and artificial intelligence as well.
This move has been supported by investments by the government as well. Such a shift in economic investments has left experts hopeful for a comeback of the benefits of the 1990s economic system. The country is now witnessing an increase in worker productivity that could bring Fort a business boom like the one seen 20years ago in the 1990s.
Many companies and businesses have begun to employ a more efficient system allowing productivity to increase with a lesser workforce. Economists are hopeful that this change could turn into the start of a booming economy with long-lasting benefits. The reason for this potential boom is the increase in worker productivity. Productivity of workers improves when workers have better tools for advancement.
With a work-from-home mindset being the need of the hour during the pandemic, businesses need to employ robots and artificial intelligence to complete on-ground work. With the efficiency and accuracy of artificial intelligence and robots, it is no wonder that a mini-boom of the economy seems imminent.
Due to improved productivity, goods and services are more readily available. This allows for decreased prices and higher wages. Such a situation is the perfect setting for economic increase. The Labour Department has recorded promising data. According to the Labour department, worker productivity increased by 4.3 % in the first quarter and by 2.3 % in the second quarter.
This increase is double the percentage that was seen in the decade after the financial crisis, where data shows workers’ productivity at an average of 1.2 %. According to an analysis by Goldman Sachs and the McKinsey Global Institute, the situation is optimum for continued productivity spanning a number of years.
The situation is a stark contrast from the period after the Great Recession when economic advisers and technology experts could not comprehend why advances in artificial intelligence technology and robotics were not seen in productivity.