What is an old economy?

The old economy refers to an economy whose growth is primarily based on improving production efficiency. On the other hand, the new economy draws on growth in the knowledge of the rate to improve services. In the largest countries in the world, the old economy has been introduced from the second industrial revolution until globalization, which followed the collapse of the Soviet Union. It was characterized by a stable degree of technological integration, while the basic organization of the economy remained stable.

Agriculture has tended to control the structure of world economies before electricity and oil were widely available. Electricity eventually made it possible to operate many different machines, each with a specialized task. This tended to make qualified and unskilled work more productive than in a small scale decentralized. In addition to factory efficiency, transport also defined the structure of the structural economy. Keroleum associated with cars that used mThe internal combustion cants allowed the supplied factory produced at relatively low costs.

production in the old economy tend to focus on the national market. High quality roads, especially in the United States, led to cheap delivery of goods across the country. In addition, many nations have placed tariffs on imported goods from other countries during this period. This tend to discourage entrepreneurs from an attempt to sell their products at international level. Good domestic transport infrastructure and low taxes caused profitable to sell produced goods on the national borders.

In 1950, most jobs in the US used unskilled work in the US, the economy grew so that wages and productivity grew by about 3%every year. This growth generally resulted in a reduction in the person's retraction to goods for goods. New technologies have been integrated into the production process.

after afterRed -ups of the 20th century. The rates of economic growth began to fall around the world. The rate at which new technologies could improve efficiency has reduced. However, some technologies have changed the way of organizing the economy. Information -related technology such as computers, mobile phones and the Internet said the end of the old economy.

In the new economy, information should dominate economic growth. During the US, only 15% of jobs in the US were unqualified in the US. Businesses that hire more educated employees who can generate information faster than their competitors are now an advantage. Many jobs will move from production and to the provision of business -related services. Markets at the age of the new economy are also global, not national.