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

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.