What is the new economy?

The new economy refers to a shift from a production based on a knowledge economy in the United States and similar countries during the second half of the twentieth century. In the old economy, market growth was primarily stimulated by improving production efficiency. In the new economy, the tendency to grow is to be based on the extent that new technologies can be used to improve the service. Future prospects for the new economy are not well understood and many competitive theories offer various predictions.

In the United States, the economy was organized around production in 1950, with 60% of jobs unskilled. Unqualified work is mainly manual work that does not require educational titles or specialized knowledge. The market of this time was primarily of national taxes, cheap land and good transport infrastructure caused them to sell goods on the American border. Manufacturing companies have focused on improving the efficiency by achieving incremental costs. Annual productivity growthY and wages were around 3%at the moment.

In the first half of the 90s. This level of growth in the US was less than 1.25% This slow decline in production growth attributed the availability of cheaper work abroad, exhaustion of natural resources and requirements for higher standard of living of US workers. Development countries were able to make products cheaper than the US industry proved, and this caused many consumers to stop buying from domestic businesses.

Today, a competitive advantage for the company is usually based on progress in the education and training of workers. In 2000, only 15% of US jobs could use unskilled work. Wages for unskilled workers have been declining in recent decades, especially for those who do not have a diploma in high school. Education was considered the key to individual success in the new economy.

in the new economy already work processIt is no longer static. Technologies can be used to change the organization of enterprises and the economy itself. Many jobs are more oriented to generate information rather than the production of material goods. This is now visible in high number of jobs in offices in developed countries in developed countries.

The community usually seeks to attract businesses in the new economy. In addition to good physical infrastructure, access to key information networks is appreciated. Usually there are incentives for higher education. The involvement in the global economy is now also considered necessary in many trading sectors.