RECESSION IN INFORMATION TECHNOLOGY IN U.S.A.

                                                                                   

Dr. (Mrs.) Jyoti Singh, Economist

1st Floor, MIG – 66, Hanuman Nagar,

                          Kankarbagh, Patna: 8000020. Bihar, India.

Ph:0612-367209. Chairman: L.N.S.International

Institute  of Economic Growth, HR, IT & Research.

Dated 20.2.2001.

 

It has been reflected in early 2000 year about the recession in Information Technology in USA on the basis of an economic analysis that the Information Technology has a limit of growth and I.T has a saturation point. But the economic growth has no limit of a person/country. Because, the Information Technology is not productive system like industry, agriculture etc. It is a process of faster-than-fastest information system. Information Technology is a part of communication system.

 

When a person has no way to get the information about their day-to-day business or world, he will get some loss due to a communication gap. So, communication is essential for the development of business/ country/ agriculture/ science & technology etc. There have been many ways of communication from early age i.e. personal messenger, letter, telephone, telex, books etc. Today one of the most developed communication systems is called Information Technology. A person requires many types of systems for communications i.e. letter, personal messenger, telephone, fax, email, and cars / aeroplanes are used for self-perception and direct communication etc.

 

Now the other communication systems are shrinking and every thing is emphasized only on computer i.e. Information Technology. It is the fact that through Internet, the people of world are sitting together at a place, at a time for the communication of messages i.e. information about each other’s requirements. It is essential now for the people of the present world that they will get the knowledge of I.T. I.T is used in every walk of life and for day-to-day business. So, I.T will be used like a language in future which will be essential for each. The limitation and saturation point in I.T could be explained as:

 

            LIMITATION: For example a person who has done a business of one million, requires 10 Telephones, 10 Computers, 10 Cars etc. When he becomes a billionaire, he will not require 1000 Telephones, 1000 Computers, 1000 Cars etc. for their communication / information of their business. So, there is a limitation point to use the communication / information system.

 

            SATURATION: Another example about the information technology is that when a person wants to create 100 stories Civil Construction building, he requires one-lakh labourers. If, he wants to create another building, Again he will require one-lakh labourers and so on.

 

But in information technology, a model is built up for a bank. It is universal for all like/kinds of banks. The same is used for all banks and banking purposes around the world. If a bank has developed software for his own purposes only. It is also universal for all their branches. So, there is a saturation point. When a person/business/industry/ country etc. does not require more for their purposes i.e. when they will achieve all things for their requirements it means they will reach at a saturation point.

THE INFORMATION TECHNOLOGY IS USED FOR WHAT?

 

THE MOST IMPORTANT THING IS THAT THE INFORMATION TECHNOLOGY IS USED FOR WHAT? It is used for information. INFORMATION OF WHAT? i.e. information of business, science & technology, agriculture, health, economy of a country, etc.

            U.S.A and the whole world have given their complete attention on the development of information Technology and on the other side the most important basic things are ignored by them that is business, industry, science & technology, agriculture, health, etc. They could not give their attention on the growth of basic things for which information is required.

            It has already been hinted in the letter to Mr. Terry Finley, Research Department of U.S.A and the hon’ble President early August 2000 year i.e. the economic growth of a person / country, has no limit i.e. if a person is millionaire, he will become a billionaire and so on. But he requires an apparatus of communication at the time of millionaire i.e. 10 Telephones, 10 computers, 10 Cars, 1 Aeroplane. When he becomes billionaire, he would not require 1000 Telephones, 1000 computers, 1000 cars, 100 Aeroplanes. When a person has reached at a saturation point of his requirements of information, he needs nothing further and after a long time he may require few more things for information.

            So, I.T. has limitation and a saturation point. When a person /country reaches the saturation point, there is a limitation of growth of I.T. i.e. invention of new things or development of a few software for the requirement of the people. In the case of the USA, it has reached both points. The cause of unemployment in I.T in the USA is explained as:

            We imagine that one-lakh labourers are used in building up a model of software, which is required for a bank. Once a model is equipped, there is no use of those labourers for the purposes of that model anywhere in the world. One-lakh labourers are completely unemployed for that purpose. The same thing is not happening in basic growth of industry / agriculture / multistoried buildings etc. If, one lakh labourers are used in the creation of 100 stories building creation, if again we want to create another 100 storied building at a near by place or anywhere, the same labour is used for the purpose and it is a continuous process. The same process has been taking place in industrial product / agriculture product etc. But in information technology the things are not happening in this manner and I.T. has no such type of requirements. One model of software is developed for the utilization of a bank. It is universal for all banking purposes around the world. This is the cause of unemployment in the USA.

            Again, it will be suggested to the Govt. of U.S.A and other countries of the world to come on the path of real economic growth and employment, which will make their country prosperous. Yet, Economic growth of any country could not be correlated with employment growth of that country. So, unemployment is a great problem for the present scenario of the world. One of the basic causes of recession in the present world is also unemployment and poverty. So, I am requesting the world communities to read these articles of Prof. B.N.P. Singh, Internation Renowned economist: - Lakshminarayan Model to combat global markets recession, Lakshminarayan model of Taxation in Asian Drama. Lakshminarayan model of employment is superior to Pigoue and Keynes, Comparison between the ideas of Lakshminarayan and Amaratya Sen on welfare Economics and the most important book “Value and Growth” for the benefits of their countries. We have been claiming from late 1998 that the world market recession problem can be solved only on economic theories of Lakshminarayan Sinha, which is given in the book “Value & Growth”.