Comments on: Digital Economy Future Directions http://www.buddeblog.com.au/frompaulsdesk/digital-economy-future-directions/ From Paul's Desk Sun, 05 Sep 2010 09:49:58 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Paul Budde http://www.buddeblog.com.au/frompaulsdesk/digital-economy-future-directions/comment-page-1/#comment-100198 Paul Budde Tue, 10 Feb 2009 02:27:13 +0000 http://www.buddeblog.com.au/?p=446#comment-100198 Thanks Peter, Difficult issues of course. In general terms infrastructure investments tend to have a longer term effect. What, at the same time, I am advocating is that we in preparation of the availability of this infrastructure we should start building the e-applications that can be delivered over this network. This in itself will require a lot of preparation and investments here, there could be a more direct short-term effect. There is a US forecasts that $10bn investment in broadband provides 500,000 jobs, $10 bn in smart grids 240,000 jobs and $10 bn in e-health 210,000 jobs. See: http://www.itif.org/index.php?id=212 Thanks Peter,
Difficult issues of course. In general terms infrastructure investments tend to have a longer term effect. What, at the same time, I am advocating is that we in preparation of the availability of this infrastructure we should start building the e-applications that can be delivered over this network. This in itself will require a lot of preparation and investments here, there could be a more direct short-term effect. There is a US forecasts that $10bn investment in broadband provides 500,000 jobs, $10 bn in smart grids 240,000 jobs and $10 bn in e-health 210,000 jobs. See: http://www.itif.org/index.php?id=212

]]> By: Peter Williams http://www.buddeblog.com.au/frompaulsdesk/digital-economy-future-directions/comment-page-1/#comment-99951 Peter Williams Fri, 06 Feb 2009 23:34:44 +0000 http://www.buddeblog.com.au/?p=446#comment-99951 100,000 new Australian jobs would be great but I don't understand the flow of your logic. If the current increase in unemployment is due to the current drop in economic activity (as measured by GDP) which in turn is being caused by a drop in aggregate demand, then won't reversing it require an increase in aggregate demand, either by stimulus in the short term or waiting for prices to drop to a level where people will start buying more goods and services in the long term? If I understand your argument correctly, you are saying that trans-sectoral development will increase GDP which will increase jobs. I can see how this can work in the long term, but how can improvements to supply increase aggregate demand in the short term? 100,000 new Australian jobs would be great but I don’t understand the flow of your logic.

If the current increase in unemployment is due to the current drop in economic activity (as measured by GDP) which in turn is being caused by a drop in aggregate demand, then won’t reversing it require an increase in aggregate demand, either by stimulus in the short term or waiting for prices to drop to a level where people will start buying more goods and services in the long term?

If I understand your argument correctly, you are saying that trans-sectoral development will increase GDP which will increase jobs. I can see how this can work in the long term, but how can improvements to supply increase aggregate demand in the short term?

]]>