Weekly Geopolitical Report – A Productivity Boom: A Response to Robert Gordon, Part II (July 24, 2017)

by Bill O’Grady

Last week, we began an analysis of Michael Mandel and Bret Swanson’s paper[1] which is a response to Robert Gordon’s argument that the West is doomed to a prolonged period of slow productivity growth.

In Part I of this report, we examined the productivity issue and discussed Mandel and Swanson’s analysis of the situation, focusing on their specific division of industries.  This week, we will look at six sectors of the economy that appear poised to digitize and how that could change the economy.  We will also discuss the conditions necessary for Mandel and Swanson’s position to be correct.  As always, we will conclude with market ramifications.

The Six Sectors
Mandel and Swanson’s six sectors are transportation, energy, education and training, retail and wholesale distribution, manufacturing and health care.  We will discuss them in that order.

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[1] http://www.techceocouncil.org/clientuploads/reports/TCC%20Productivity%20Boom%20FINAL.pdf