Why has the US nearly doubled GDP with the digital revolution?
Over twenty years of the digital revolution, many people now have smartphones in the usual way. There, we use the Internet to buy and sell goods and use Google and Yahoo! to obtain the information we want to search, and we live a life that we could not think of until 25 years ago.
However, looking at the results of the digital revolution, for example, Japan’s GDP growth rate is almost flat. However, the United States has nearly doubled its GDP by 137% over the 20 years that this digital revolution has taken place. So why did the United States succeed in doubling GDP after the digital revolution?
1: Major revision of the Telecommunications Act
In the United States, a significant revision of the Electronic Communications Law was made in 1996 to allow domestic IT companies to grow without being bound by regulations and to improve the US economy. Simply put, this is “deregulation” in the electronics field. Through deregulation, it is a competition from manufacturers to retailers to aim for optimal allocation of resources. Thus, the high-tech industry in the United States has been able to grow significantly.
2: PC penetration rate was high
In the United States, the penetration rate of PCs is higher than in other developed countries, and many people held it for e-mail, database, etc. before it could use the Internet. Therefore, before the spread of the Internet, many people got used to personal computers and people near them, and as a result, they got used to factors that immediately affected economic activities.
3: The content was substantial
As the content was rich factor, the United States is a country that uses “English”, which is said to be the universal language, as the first language, so not only the contents from America but also the contents written in English all over the world I was able to view it. Thus, the more the content is enriched, the more users are simultaneously increasing, and the IT field has grown in the United States. Therefore, the content was richer than people in other countries. This is a fact that does not change now.
4: Low communication cost
In the United States, some companies offer unlimited flat-rate services with unlimited monthly fees of about $ 20 in 1996, and companies with high market share have started flat-rate services as well. This price competition among internet vendors lowered the price of the charges for internet connection of users, eventually increasing users.