Robert Gordon and Erik Brynolfsson debated their opposing views of where the economy is headed at TED2013. Last week, they brought the debate to a TED Conversation. Photos: James Duncan Davidson

Last week, TED speakers Robert Gordon and Erik Brynjolfsson joined us for a live, one-hour debate on the future of the US economy.  It was a furious hour of typing, with both speakers contributing just over 1,500 words in response to a wide variety of user questions.  A few highlights:

Ryan Zeigler asks:

Mr. Brynjolfsson, you stated in your talk that you feel that we need to “race with machines” rather than against them. In what manner do you feel that this effects the future of education?

Erik Brynjolfsson responds:

We really need to reinvent education. My industry has lagged other industries in digitizing. Far behind music and other media, finance, manufacturing, retailing, etc.  But that’s good news: lots of room to improve.  Digitization of education will do two things:

1. Much higher quality and lower cost as very best teachers and methods reach larger audiences. Examples: superstars like Sal Khan of Khan Academy or physics lessons from best MIT profs at EdX.
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2. More importantly, gather enormous data about what’s working and not working. Apply big data techniques to improve teaching methods and to personalize how things are taught. Adapt pace and methods, based on students unique situation. Continuous learning by the educators, not just students. My students are already doing this to optimize ad clicks – can soon do it for education.

Michael Noyes asks:

Capitalism has created more wealth by far for more people than any other system. However, have we reached a point in our technological history when the pendulum must swing back toward more socialist economics to achieve more prosperity for more people?

Robert J. Gordon responds:

You have to distinguish between “socialism” and the capitalist welfare state as exemplified by Sweden, the Netherlands, etc. Socialism involves government ownership of the means of production and was practiced by the postwar UK Labour government which nationalized steel, transport, etc. It was Thatcher’s achievement to reverse all that, and Britain went from being a laggard to one of Europe’s most dynamic economies.

Yes, we need more of a welfare state, particularly to prepare children in poverty to compete in our educational system. Now they are dropping out of high school and condemning themselves to lives of manual labor and unemployment.

Theresa Sanker asks:

When are America’s economic priorities going to shift toward education, saving, and long-term investment, and away from excessive reliance on military power and cheap energy?

Erik Brynjolfsson responds:

When more people like you demand it. Simple as that.

Robert Gordon adds:

Heckman has shown that the problem is not that we don’t spend enough resources on education. Reducing class sizes has no effect. The problem is that educational resources are not distributed evenly. In an ideal world we would get rid of property taxation as the basis for educational finance, since that gives an advantage to communities with wealthy residents. We should have education funded by a nationwide value-added tax.

The problem with our military, besides the needless wars in Iraq and Afghanistan, is the endless buckets of cash poured into ridiculous projects like the F-35 fighter which has no known enemy to justify its cost. We built the B-17 in WWII for $250,000 per plane!

Finally, what’s wrong with cheap energy? Are you in favor of expensive energy?

With 113 excellent questions and answers, this was a fascinating and informative debate. Don’t miss the rest of the responses, available on TED Conversations »

Robert Gordon: The death of innovation, the end of growthEconomists Robert Gordon and Erik Brynjolffson see very different things when they look at the stagnation of the U.S. economy in recent years. It’s almost as if they’re looking at an optical illusion image – one seeing a candlestick while the other sees two faces just inches apart. In today’s talks, they both outlined their thoughts.

Gordon sees the candlestick — he believes that the growth could be tapering off for good and that our best innovations may be behind us. As he points out, between 1900 and 1960, we went from traveling by a horse and buggy to taking Boeing 707s. But in the sixty years since, we haven’t learned to go any faster at a mass commercial level. What’s wrong? In his talk, he outlines four headwinds which are keeping us from continued growth at the pace of the past two centuries: demographics, education, debt and inequality.

Erik Brynjolfsson: The key to growth? Race with the machinesMeanwhile, Brynjolfsson sees the faces. He says that the stagnation may simply be growing pains as we move from an economy based on production to one based on ideas. He also looks to the past for an example, taking us back 120 years to the Second Industrial Revolution. While all the tools were in place for mass production, it took three decades for productivity to skyrocket. The first generation of managers — who had old ideas about systems and workflows – had to age out of the system for growth to start. This is where Brynjolfsson thinks we are now. He sees another wave of innovation in our future — if humans can learn to work alongside computers and robots in more symbiotic ways.

Click the links above to watch these two fascinating talks. And then watch this 12-minute debate between the Gordon and Brynjolfsson on what it means to work today … and what it will mean in the future.

Do you think we are witnessing the end of innovation? Is growth over? Did either speaker here change your opinion? Explain in the comments.