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May/June 2009

Can Technology Save the Economy?

The U.S. stimulus bill includes tens of billions to support energy and information technologies. So why are economists and innovation experts so skeptical?

By David Rotman

Credit: Technology Review

This is the first of two articles by David Rotman on technology and the federal stimulus package. The second, "Chasing the Sun," appeared in the July/August 2009 issue and examined the impact of spending billions of dollars on renewable energy will have on the future of solar power.

By any measure, $100 billion is a staggering amount of money. That's how much the federal stimulus bill devotes to the discovery, development, and implementation of various technologies. Some $20 billion will fund the increased use of electronic medical records; another $7.2 billion will support the extension of broadband Internet access to areas currently without such services. Most impressive, roughly $60 billion will be spent on energy, funding everything from energy-efficiency programs to loan guarantees for the construction of large facilities that use new biofuel and solar technologies.

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