Economists are deliberating whether the American economy is on the brink of a transformative boom akin to the 1990s amid early signs of a potential resurgence in productivity, The New York Times reported Feb. 21.
U.S. productivity measures have increased significantly for the first time in years, driven by new artificial intelligence advancements and hybrid work, according to the report. Economists are closely monitoring whether these productivity gains could lead to sustained economic growth, a phenomenon last seen in 1994 amid the rise of computers and the internet.
However, some economists remain cautious to confirm the trend, noting several key differences between today and the '90s. Three decades ago, computers allowed economic gains across numerous sectors, but AI may only offer significant benefits for office work, according to Robert Gordon, PhD, an economist at Evanston, Ill.-based Northwestern University.
"I don't see the universality of A.I. sweeping through the economy with that multi-industry impact," he told the Times.
Economists are also still debating whether fully remote work helps or hinders productivity.
Read more from the Times here.