I’m just writing this post to let my readers know that I no longer think that technological change is reliably accelerating. It seems to me that most major technological developments of the last century occurred mid-century, for instance. I agree with the recent BusinessWeek article that claims that innovation has slowed in the 00s. For what it’s worth, I stopped believing in reliably accelerating technological change before the recession started, I just didn’t bother to write about it here. I do think that the law of accelerating returns has some merit, but it’s less than implied, and it seems to me that society undergoes periods of both linear and lightly accelerating technological change. One deceptive confusion has to do with the difference between cutting-edge technological breakthroughs which are lab curiosities for the time being and breakthroughs which are actually commercialized and adopted.

There are extremely strong social and economic pressures to engage in research that looks trendy and produces a bare minimum return. I also doubt that most people at knowledge jobs are actually working at any given time. (There is another random blog post that I wanted to link on that, which I saw on Michael Silverton’s Twitter, but I can’t find it. See also Andy Rooney’s recent observation that everyone is carrying books to work and acting like they aren’t reading them.) This is radically different than in the past, when people had to work or it was obvious they weren’t. This has to be hurting our total productivity. To use Half Sigma’s terminology, I also think that people are making a tremendous amount of money on wealth transfer rather than wealth creation, when they are actually working.