(Bloomberg View) -- For some time now, we have been reading about the tech revolution: Entire industries are being "disrupted," the way we do the simplest things is changing, the pace of innovation is accelerating. According to economic data, however, nothing much is happening. Should we believe our eyes or the data? It's not an obvious choice.
Former U.S. Treasury Secretary Larry Summers talked about one aspect of the paradox at a recent conference on productivity. If technological innovation is driving low-skilled workers out of the workforce -- in 1965, 19 out of 20 men between the ages of 25 and 54 were working in the U.S., but now only 17 do -- shouldn't productivity rise faster? Intuitively, it should, both because fewer people are employed and the economy is growing and because it's the least productive workers who are being "dis-employed."
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