Ballmer on the economy: Tech will save us

The tech industry may not stop the economy from slowing but it will be a big part of the eventual recovery, Microsoft CEO Steve Ballmer said on Tuesday.

"Nothing is going to stop deleveraging; the economy has to reset," Ballmer said, as part of a joint interview with EMC CEO Joe Tucci. "At the same time you've got to say 'where do you get economic growth?' The truth is, you only get economic growth from the following things. Population growth, inflation, productivity increases... and financial leverage."

There's no question, Ballmer said, that there will be a decrease in the overall amount of leverage held by businesses and individuals. "We can't really change that," he said. "Population we don't influence and inflation the government is going to take care of. That leaves you with productivity."

"I think if you did a fair analysis of the last 25 years and said what's has been the top source of productivity gain in the US or world economy, it has been information technology," Ballmer said. "I don't know that we fix the negative factor of deleveraging...but whatever great glimpse of hope comes in large measure from information technology."

EMC's Tucci said the tech industry should also benefit in the nearer term from some of the various stimulus efforts being contemplated in the US and around the globe.

"I think there [are] a few things relative to the stimulus package that everyone agrees with," Tucci said. "A: we need one B: it should help create jobs. C: maybe it's good to address some of the systemic issues we've had in society for a long time."

All of those bode well for information technology, Tucci said.

"When you think about healthcare, to solve this problem you are not going to solve this without a lot of information technology...When you think about the issues in education and I could go on and on. I think a lot of the programmes that are very likely to make our stimulus package or stimulus packages of other governments around the world, right behind them will be a strong component of information technology."

Original article: Ballmer: Tech is economy's eventual savior from CNET News.com