No matter how rich or poor we are, each of us gets…
““No matter how rich or poor we are, each of us gets twenty-four hours in a day. In order to consume YouTube, Facebook, or e-mail, we must ‘pay’ attention. In fact, Americans nearly doubled the amount of leisure time they spent on Internet between 2000 and 2011. This implies that they valued it more than the other ways they could spend their time. By considering the value of users’ time and comparing leisure time spent on the Internet to time spent in other ways, Erik and Joo Hee estimated that the Internet created about $ 2,600 of value per user each year. None of this showed up in the GDP statistics but if it had, GDP growth—and thus productivity growth—would have been about 0.3 percent higher each year. In other words, instead of the reported 1.2 percent productivity growth for 2012, it would have been 1.5 percent.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Digital activities consume valuable time, creating economic value that traditional metrics miss, suggesting productivity is higher than reported.
In simple terms: Internet use adds hidden economic value.
Key Takeaway
Recognize and account for digital productivity.
Themes
digital economy
productivity measurement
time value
Mood
analytical
critical
Type
economic
technological
When to use this quote
- business strategy
- policy making
- personal time management
- investment decisions
Key Concepts
economics
technology impact
Questions to Reflect On
- How can we better measure digital contributions to GDP?
- What policies could capture hidden productivity?
A Different Perspective
Quantifying digital value is complex and may vary across regions.