Why Investment in Information Technology Is Economically NecessaryJoin now to read essay Why Investment in Information Technology Is Economically NecessaryIncreased investment in information technology has brought about more widespread use of computers and the internet. They are now cheaper, more powerful and more mobile. Computers have increased the dissemination of information and decreased production costs for many firms. There is now a necessity for business, educational institution and home ownership. However, we must face the problem of the ever-widening “digital divide.” There seems to be a tendency for low-income families and minorities to lack computer access. The first step is to encourage ownership. We can achieve this by providing incentives for companies to expand their markets to these unprovided for groups. Increase access will benefit the country by lowering unemployment, increasing wages and increasing the standard of living.
First of all, IT has increased productivity. This means that for every unit of labor, usually measured by hour, more is being produced. At the same prices of production, more is being produced. This makes businesses more profitable. Increased productivity has created economic growth (Increased growth rate of GDP?). Shown in the Phillips Curve, imcrease productivity will make inflation and unemployment decrease at all possible (outcomes), shifting the curve in. (It increases real GDP? Whats real GDP?). This allows for lower unemployment as well as lower inflation when there is usually a trade off. Our main goal* should be to enact policies* that create* economic growth, which will lower unemployment, or increase the number of jobs, and keep inflation stable. Obviously, IT has been beneficial for our nation and the world. We need American citizens to be aware of the benefits, or else providing them with the physical instruments will achieve little.
We can also represent our growth with the the Production Possibilites Frontier. The PPF is a model showing all possible combinations of output that can be produced with the technology of that time if all resources are efficiently used. Economic growth is demonstrated through an entire shift of this model up and to the right. Encouraging investment in IT and ownership of computers will generate economic growth, increasing GDP and shifting our PPF up and to the right. So long as the rate of economic growth exceeds the rate of population increase, we will also see an increase in the standard of living. The standard of living is qualitative, but we quantify it with real Gross Domestic Product (GDP) per capita. The greater the GDP per capita, the greater the standards of living. One of the governments roles is to maintain and help raise the quality of life of its people. IT is one way to help do that.
If investment increases, GDP increases. This means that there is more needed to be produced and more of a demand for workers. The amount by which GDP increases is much larger than the amount that investment increases. Investment is only one component of GDP, but it also affects consumption C and net exports (NX). Increase GDP is the same as an increase in income, so everyone consumes more. Increased consumption generates increased income for some workers, so they in turn consume more. There are rounds and rounds of this process. Economic growth means a lot.
The market for computers is monopolistically competitive. There are lots of firms in the industry with heterogeneous products, product differentiation, and there are few barriers to entry. Increase in demand over the past few years has meant abnormal profits for firms in the short run. Profitable industries attract firms so the number of firms has increased. If there are incentives to investment in IT, the less it will cost for a firm to enter the industry. The number of firms will increase, supply will increase and prices will go down [consider the MR, ATC, etc. curve. This seems too easy of a logic.] Increased competition has driven down the price of computers. The (low-end) computer industry is becoming more perfectly competitive, which results in a greater consumer surplus and??. More and more families can afford them, but there are still many who cannot.
Because of IT investment and a greater awareness* in the [necessity/cruciality] of computers, there has been an increase of students majoring in the computer field. If there is an increase supply in computer-related jobs without an increase in demand of firms for computer-related laborers, wages will decrease. Workers have less bargaining power, less (something) to ask for higher wages. If we invest in IT we will increase the amount of jobs for the increase of entrants into the IT job market and their wages will rise. In addition, firms have been replacing unskilled workers with machines using computer technology. Firms are instead demanding highly skilled workers such as computer technicians and engineers for design, operation and maintenance. The new technology leads to an increase in the demand for skilled
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To understand how this works, I will first look at the [necessity/cruciality] of PCs. The primary goal of computing is computer-as-a-service using operating system software. In fact it is this focus on operating system and operating system software that has led to a dramatic increase in PC numbers and the increase in PC prices. When Microsoft began installing Windows Server Core, PCs became the new operating system for computers, and they went on to lead the world in computing in a number of areas. Microsoft is right, but it has also shown it can be a huge competitor in the industry.
In the early 2000s, the first computers for government services were in the military.
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When these computers were replaced by Internet-based servers, the computer services and services started to come together for a change of pace. This time was not a good time to invest in computers, so it was a time to invest in building new and better capabilities for our military. By the early 2000s, there was an increase in military and civilian computing, but the rise was more marked by higher civilian usage.
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As I said, the computer market will expand from a low to the middle percentile, and the demand has risen steadily. This trend will continue for 10 or 20 years. There are certainly new services available. People are buying the latest technologies at a high price point, and those same technologies will continue to increase. Even with the technological change, there is still nothing revolutionary about computer services. If we invest in computers we increase the value of computers. There is a greater demand for skilled jobs in the middle of the world, and we will see a strong demand for IT jobs. In fact the world could be better off if we build out computers in other countries.
On the other hand, if we invest in IT we have a very clear incentive to maintain a strong market. This is what has led to increased business competition and the increasing share of IT jobs. This is especially true when IT is the leading source of business income for many people in the United States.
The value of the Internet has not increased as fast as the value of the home computer hardware.
However, the most important thing about getting our users at lower cost is to keep improving our Internet product and service. This is exactly what I have been doing when I’ve made big investments in Internet and computer systems.
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[…] While my current investment has not generated billions of dollars in profit, $15 million could be an important financial boost for the United States and the industry.
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Microsoft has shown a commitment to the Internet. We want the most out of Windows. We value your loyalty as a user. We want you to have freedom of use by purchasing computer services in countries where the Internet is available. That’s why we have spent millions of dollars to increase Internet access.
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If we invest in innovation and innovation-enabled jobs, we will expand the value of Microsoft systems. I know Microsoft is making the investments it needs to. I have invested enough. Now the challenge is to create jobs for our employees, and we need companies making more