Panic In The Year 2000
For the economy, the Year 2000 software problem has already arrived. The good news is that the pell-mell race to fix the Y2K bug is pumping up capital spending and tightening the job market for any college kid who can write code. The bad news is that fixing the first-ever global glitch in information technology will take half a percentage point off gross domestic product growth in 2000, reduce productivity growth, and raise inflation. But that's under a best-case scenario. Odds are, given the enormous complexity of the problem, the economic impact will be worse. For individual companies and government agencies, such as the Internal Revenue Service, the situation could be a disaster.
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