Andrew McAfee: Sorry, What Investment Shortfall?

InsightaaS: As you probably know, the InsightaaS tagline is "the ‘why’ in enterprise technology." We are constantly on the lookout for ways to illustrate the impact of IT on productivity, profitability, efficiency — all of the objectives of enterprise executive management. 

One of the best voices in this debate is Andrew McAfee. In this post from his "The Business Impact of IT" blog, McAfee takes a fresh look at business investment in IT - and finds that if we account for the integration of technology within non-IT equipment like machine tools and trucks, we get a very different perspective on the extent to which business is acquiring technology. 

In our debate earlier this week Rob Atkinson talked about how US companies weren’t investing like they used to. He’s not the only one concerned about a dropoff. Tyler Cowen had a post in July of this year titled "Why is US corporate investment not more robust?" It points to an article in the FT that contains much head-scratching over the fact that "Profits in the US are at an all-time high but, perversely, investment is stagnant."

I agree about the profits (Atkinson doesn’t, but his errors of fact are a subject for another post), but I’m not convinced there’s any deep puzzle here. I just don’t see the alleged investment shortfall...

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