Technology + Infrastructure + Education Investments
Drove ~90% of Labor Productivity Growth for Past ~30 Years
Sources of USA Average Labor Productivity Growth, 1977-2000
= Technology Investment
i Infrastructure & Other Investment
1 Education (Labor Quality)
1 Other (Total Factor Productivity)
Average Annual Growth Rate (%)
0.0%
1977-1990 1990-1995 1995-2000
Note: Total Factor Productivity is the portion of output not explained by the amount of inputs used in production.
Source: Dale W. Jorgenson, Mun S. Ho, Kevin J. Stiroh, “Growth of U.S. Industries and Investments in Information
KP Technology and Higher Education” <http:/;www.nber.org/chapters/c10627> (@)E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 367
However, USA Inc. Has Increasingly Allocated Resources Away from
Productive Technology + Infrastructure + Education Investment / Spending Toward Less-Productive Entitlement Program Spending
USA Real Federal Productive vs. Less-Productive Spending*, 1970-2009
100%
80%
60%
40%
20%
% Share of Total Federal Spending
0% 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006
Note: *Total spending exciudes one-time items (such as TARP / GSE / ARRA) for F2008 / F2009 data.
Data source: White House Office of Management & Budget (1970-2009).
www.kpcb.com ne. at Might a Turnaround Expert Consider? kpeb USA Inc. | What Might a T dE Consider? 368
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