Home > United Nations Online Network in Public Administration and Finance (UNPAN)
1. Global
Global
2. Africa
Africa
3. Arab States
Arab States
4. Asia & Pacific
Asia & Pacific
5. Europe
Europe
6. Latin America & Caribbean
Latin America & Caribbean
7. North America
North America
UNPAN North America
Public Administration News  
Share
U.S.: Analysis: The Internet of Things Will Save the U.S. from the Great Stagnation
Source: nextgov.com
Source Date: Tuesday, September 17, 2013
Focus: Electronic and Mobile Government, Journals, Knowledge Management in Government, Internet Governance
Country: United States
Created: Sep 17, 2013

I know the coffee’s ready because the light in the Quartz kitchen is purple, not pink. The light knows the coffee is ready is because there are sensors—heat and pressure—taped to the coffee maker. This is the Internet of things. It will save us all from economic ruin.
 
Or at least that’s what a new estimate from innovation guru Michael Mandel says. He figures (pdf) that the “Internet of things”—the increasing number of machines equipped with internet-connected sensors—will expand the US economy by $600 billion and $1.4 trillion in 2025, roughly the equivalent of boosting GDP by 2 percent to 5 percent over the intervening time period. That could be the difference between so-so growth to the kind of stable growth that drives down debt and unemployment.

More broadly, the argument he’s making is a reply to economists like Robert Gordon and Tyler Cowen who fear that the big gains in productivity that supported an expanding middle class and the modern welfare state won’t be replicated anytime soon. This has major social repercussions—namely a scenario known as the great stagnation. The Internet, for all the ways its changed our lives, has offered its gains largely in the form of consumer surplus—free stuff on the Internet you used to pay for, in short—that is great and important but not necessarily money in your pocket.

Today’s Internet of things is limited to consumer surplus, like Quartz’s coffee pot monitor or our weather bulb. But the future Internet of things will be a different beast, because by definition it takes the Internet out of the world of abstraction and into industries—manufacturing, energy, transportation—where productivity gains would have a more tangible impact.

(By Tim Fernholz)

News Home

 Tag This
 Tell A Friend
del.icio.us digg this Slashdot
Rate:
0 ratings
Views: 112

Comments: 0 Bookmarked: 0 Tagged: 0



0 Comments | Login to add comment

Site map | FAQs | Terms and Privacy | Contact Us
Copyright 2008-2010 by UNPAN - United Nations Public Administration Network