Twitter Saps Productivity, Facebook Makes You Fat
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Dec. 27 (Bloomberg) -- Ever since the invention of thewheel in Mesopotamia around 3500 B.C., technological innovationhas been improving our lives. Because new devices and processeshelp us produce more (output) with less (labor input), pricesfall, real wages rise and we are all better off. If there is afree lunch in this world, it’s productivity growth.
There is even an economic school of thought, known as realbusiness cycle theory, which views technology shocks as the maindriver of the business cycle: not the central bank, not fiscalpolicy, not animal spirits or expectations.