No. of Recommendations: 7
Actually, I disagree. To get Clinton-era economies back you need to have what Clinton had: An entire new sector of the economy opening up coupled with a massive increase in worker productivity.

It almost didn't matter what the tax rates were in the mid 90s: The bubble, mass adoption of the PC and the interlinking of internet in the workplace revolutionized a great number of things. Every time some idiot liberal makes the comment, "Let's go back to Clinton era tax rates 'cause the economy was good then" I de-rate their IQ by 30 points.

Look at what DOL had to say in 1996 about adoption of computers:

When we switch from aggregate measures of productivity to analyses that use firm level data, a much different picture emerges of the importance of computers for productivity growth. For example, Brynjolfsson and Hitt (1993) find that computers have a large positive impact on the productivity of firms. This finding is also confirmed in new research by Sandra Black and Lisa Lynch.

Black and Lynch find that raising proportion of nonmanagerial workers using computers (in the manufacturing sector) from a third to two-thirds would increase labor productivity by 5.4 percent (see Figure 2).
As mentioned earlier, Black and Lynch find that non-manufacturing firms that provided computer training to their workers have significantly higher productivity than similar competitors.
In spite of the positive impact of computers on labor productivity, Black and Lynch (1995) find that not all employers are equally likely to provide computer training to their employees. For example, establishments with less than 250 employees are much less likely to offer computer training than larger businesses. Businesses with more educated and experienced workers are more likely to offer computer training as are those who use high performance work practices such as Total Quality Management systems or benchmarking.

Look at the sharp spike up in non farm after 1990. Look at the ridiculously high jump in manufacturing during that period:

...and the current downward trend. Notice that manufacturing productivity growth is half of what it was during the go-go 90s.

liberals think they know everything. I guess outside of math, science, engineering, politics, sports and the weather they do.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.