The 'New Economy': Outcomes, Perspectives, and Public Policy

Abstract

Since around 1980, communication and information technology moved the U.S. economy from an industrial base to an informational base. There was promise for economic growth, jobs, and a growing prosperity that would be generally shared in the population. However, this “new economy” turned out to be an era of instability and unfulfilled promise. A financial crisis and a major recession occurred. Moreover, instead of accelerating economic growth and jobs, the result was declined growth, loss of traditional jobs, and significant income inequality. The paper is authored by a retired finance professor who developed and presented a course to senior learners in Florida State University’s Osher Lifelong Learning Institute. It tells the story of the new economy by presenting a considerable amount of economic data and citing relevant works by contemporary authorities on the subject. Its purpose is to provide a resource to help understand the evolution and progress of the contemporary economy.