Selected roles of information goods and services in the U.S. national economy

The study examines selected roles of the information sector in the national economy. Among the findings are the following: (1) the information sector conducts relatively little international trade, in comparison to its domestic activity. Roughly 12% of U.S. exports are attributable to the information sector; over 97% of the sector's output is sold within the U.S.; and the sector's exports account for only a small fraction of 1% of GNP. (2) The historical pattern of employment shows that the portion of information workers has risen from 8% of the U.S. work force in 1870 to 41% in 1970. Relatively little of this growth is the result of new technological innovations such as telephones, radio, television and, more recently, computers. Rather, the growth of public and private bureaucracies, which now total 26% of our total work force, largely explains the growth of the sector. (3) Unemployment within the information sector has consistently been lower than in either the manufacturing or agricultural sectors of the national economy. (4) Since 1967, the high technology elements of the information sector, such as electronic components, computers and telecommunications equipment have experienced appreciably less price rise than has the economy as a whole. However, over the same time period, the service elements of the sector, including finance and insurance, education and medical care, have experienced greater rates of inflation than has the economy as a whole.