Report: The Internet of Everything Could Boost the Economy
BY Abigail Tracy
A new report shows how expanding the Internet of Everything can move the United States' economy out of this period of slow growth.
A September report from the Progressive Policy Institute, authored by economic strategist Michael Mandel, outlined how the swell of new technological advancements known as the Internet of Everything (IoE) could boost the US economy and move the country out of what Mandel refers to as its “slow growth rut.”
In his report, Mandel estimated that the gains from the IoE will appear as increases non-monetary improvements in welfare and GDP. Specifically, he reported that the IoE could raise GDP from 2 percent to 5 percent by the year 2025.
Mandel cited other institutions' projections of the impact the IoE can have on the economy: according to research from the McKinsey Institute, the IoE could increase global GDP by a range of $2.7 trillion to $6.2 trillion annually by 2025, while research from the GE report put that number at $15.3 trillion by 2030.
Mandel said that the impact of the IoE is more than just connecting things to the Internet, but rather the key will be building an infrastructure around the information revolution, which could improve many sectors-- including manufacturing, energy, transportation, healthcare industries, the public sector and more.
“From the macro perspective, the result will be a shift to growth that is not just faster, but higher quality,” Mandel said in his report. “Rather then being fueled by consumption and borrowing, the Internet of Everything will lead to an economy built on production and investment with much more extensive education and training built right into the fabric of the economy rather than being separated out.”