Economy

Productivity Paradox

Definition

The observation that massive technology investments (computers, internet, AI) have not consistently led to measurable productivity growth in economic statistics.

Explanation

Robert Solow famously said in 1987: "You can see the computer age everywhere except in the productivity statistics." Possible explanations: mismeasurement of digital output, long implementation lags, or technology creating convenience rather than output. AI may finally resolve this paradox.