Obama stimulus plan aims to boost digital economy
Debate may focus on whether U.S. tech investments can drive long-term productivity
Computerworld - WASHINGTON -- In pledging to "renew our information superhighway," President-elect Barack Obama has offered a broad outline of an economic stimulus plan likely to lead to major increases in IT spending -- especially for broadband deployment and technology for schools and health care.
Obama is mixing proposals that could offer a combination of gains, such as short-term spending on equipment and longer-term investments aimed at lasting productivity gains for the economy. The spending plan, outlined in barebones detail in Obama's weekly video address on Saturday, would mean new computers for schools, expanded broadband access -- particularly in rural areas -- and funding on technologies to reduce medical costs. That could mean increased spending on networking technologies to support services such as telemedicine.
Obama hasn't yet put a price tag on his plan, but since his overall stimulus package is expected to be in the hundreds of billions of dollars, money for any Internet-related initiatives could be large. But in spending big sums on technology, the Obama administration will have to show that these tech investments will deliver. Linking the bottom line to IT investments is not an easy case to make.
James Gabberty, a professor at Pace University's Seidenberg School of Computer Science and Information Systems in New York, said that determining the impact of tech spending on productivity is still difficult to measure. There's no quantitative figure that shows, for instance, "the growth of a nation's goods and services will be 'x' if you spend 'y' number of dollars on hardware, software and communications gear," Gabberty said.
He pointed to the recent financial meltdown as an example. How is it, he said, that among financial firms with similar growth rates, revenues per employee and roughly equal amounts of IT spending some failed while others did not. ''How can you have disparate yields?" Gabberty said.
But Robert Atkinson, who heads the Information Technology and Innovation Foundation (ITIF) in Washington and is also on the Obama transition team, believes tech investments will stimulate the economy. While many traditional economists focus on state and local government projects such as building roads and bridges, "we need to expand our vision," he said.
Obama's plan will represent the first major stimulus effort since the creation of a "digital economy," said Atkinson. As a result, the U.S. can't afford to focus only on a "consumption-based [effort] that leaves the nation with little to show after consumers spend the money and the economy gets back on track," according to a paper published by the ITIF in October. The ITIF argues that IT investments produce outsized productivity gains.
- 18 Hot IT Certifications for 2014
- CIOs Opting for IT Contractors Over Hiring Full-Time Staff
- 12 Best Free iOS 7 Holiday Shopping Apps
- For CMOs Big Data Can Lead to Big Profits
- Slideshow: 5 ways to lock down your mobile device
- Slideshow: 10 mistakes companies make after a data breach
- How to rob a bank: A social engineering walk through
- Which smartphone is the most secure?
If you like your iPhone, you can keep your iPhone. Period.
President Obama has revealed that he's not permitted to carry an iPhone. It's too insecure for the job, he says. Instead, he's stuck with a BlackBerry. Well, someone's got to have one still. However, it turns out that the Pentagon has also outlawed non-BlackBerry smartphones. In IT Blogwatch, bloggers joke that 2006 called and they want their smartphones back.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- Mitigating DDoS Attacks with F5 Technology
- This document examines various DDoS attack methods and the application of specific ADC technologies to block attacks in the DDoS threat spectrum while...
- The DDoS Threat Spectrum
- Bolstered by favorable economics, today's global botnets are using distributed denial-of-service (DDoS) attacks to target firewalls, web services, and applications, often simultaneously.
- Defending Against Denial of Service Attacks
- By utilizing end-user interviews, this whitepaper explores a deeper understanding of DDoS defense plans and reveals the knowledge gaps around the Denial of...
- Strategic Solutions for Government IT
- This paper outlines why F5 is the optimum partner to help achieve the levels of security, performance and availability that are vital to...
Top Considerations for Moving to a Cloud Delivery Model for ITSM
Find out whether SaaS-based ITSM is right for you
- Software-as-a-service is more than just a cloud-based delivery model-it's a new approach to service that lets companies optimize utilization of in-house IT resources... All Government IT White Papers
- Pre-Engineered solutions from VCE Simplify Core Infrastructure Implementation In this video, the CTO of Purdue Pharma, a privately held pharmaceutical company explains how Purdue transformed their data center infrastructure with VCE.
- Integrated Infrastructure: Simplify Operations, Speed Deployments and Reduce Costs George Weiss, Gartner Vice President and Analyst, and Praveen Akkiraju, CEO of VCE, provide practical information regarding the various aspects of Integrated Infrastructures...
- Video: 5 Secrets To Scaling Enterprise Apps Watch this video to learn how to successfully scale enterprise apps>>
- Collaboration 2013: Where Mobility Meets Connectivity Mobility and collaboration are quickly converging and users are demanding more capabilities. It's no longer enough to enable file sharing. This Webcast dives...
- Modernizing SAP environments with minimum risk - a path to Big Data Hear from top IDC analyst, Richard Villars, about the path you can start taking now to enable your organization to get the benefits...
- All Government IT Webcasts
Does your organization offer extensive benefits, cool perks, competitive salaries, opportunities for training and advancement? Then get it recognized!
Nominate your company or another deserving organization for Computerworld's 2014 Best Places to Work in IT list now through Dec. 12, 2013.