The Bot Brief

POSTED 02/16/2025

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“There is no such thing as a power on earth more extremely efficient than an thought whose time has draw.” Victor Hugo

Bots within the News:

The Bot Index won splendid 71 foundation facets in trading final week. That trailed the broader index by 76 foundation facets. Considerable weak point in Tesla, Azenta, Cognex and AeroVironment contributed to the underperformance.

Productivity Enchancment:

It has persistently been the hope that this novel ‘Robotic Revolution’ would dramatically alter the sector’s economic direction for the easier. By making labor less unhealthy, soiled and demeaning, robots would possibly per chance toughen the lives of all residents. It was once also the intent that, like economic ‘revolutions’ within the past (agriculture, industrial and recordsdata) advances in technology would toughen the productivity of labor. Unfortunately, just like the outdated ‘revolutions’ novel advances in technology contain yet to manifest itself in production. There has persistently been this lagging lend a hand to technological innovation, nonetheless, it is our thought that the shipping of AI (thru ChatGPT and the like) to the actual person person will tempo up the positives of automation advances.

After nearly half a century of sliding productivity growth, the trendline is starting up upward. In level of fact, labor productivity increased in 2023 and 2024 to an annual charge of 2.3% and within the third quarter of 2024, productivity reached an all-time high of 114.48 facets, 2.2% bigger than the outdated quarter and 3.8% above the outdated year. This surpasses the long-time duration realistic of 2.18%.

So why is productivity so fundamental? Per a McKinsey document published in February of 2023, ‘Returning US productivity to its long-time duration sort of 2.2% annual growth charge would add $10 trillion in cumulative GDP over the following ten years.” Anything else above that charge would provide even more impactful acceleration. Productivity also goes hand in hand with inflation. As Elon Musk and his DOGE initiative is focusing on the efficiency of authorities spending, corporations are expending billions to toughen AI’s efficiency within the office. Any systemic enchancment in either endeavor will without a doubt help as a brake on the inflation charge.

So, whether it’s seemingly you’ll per chance per chance presumably very successfully be a supply sider, monetarist, Keynesian, free trader or McKinley tariff touter, you will need to agree that productivity growth is a extraordinarily favorable economic power. The present thought that intrinsic economic growth of any economic machine is a aim of the labor power growth charge alongside with the productivity of that labor. Half of that equation is transferring within the suitable direction.

Member: American Financial Association, Society of Legitimate Journalists, United States Press Association. Institute of Chartered Financial Analysts, Robotic Industries Association (now A3 Automation), Member IEEE.

The Bot Instant is a weekly publication designed for economists, investment experts, journalists, and academicians. It receives no remuneration from any company that will every so every so often be featured within the quick and its commentaries, diagnosis, opinions, and examine tell the subjective behold of Balcones Funding Examine, LLC. Ensuing from the complex and altering nature of the topic materials, the corporate makes no assurances as to the absolute accuracy of the topic materials presented.