Economists are scratching their heads. Historic low interest rates for years, productivity levels at historic highs, supposed full employment, and we are chugging along at a dismal 2% growth in the United States.
How could this be?
In the past, this was a potent cocktail for fireworks in the economies of the world. Of course this was before computers, before mobile phones, and before laptop computers. The flow of money would rush through the system, like high octane fuel in an engine. The end result was always retail sales, hiring, economic expansion, and so on and so forth.
So what has changed?
As I sit here on my laptop, typing on an endless amount of non-consumable paper (my screen, which is good for the trees but bad for the many industries associated with paper. This would include logging, transportation, stationary, insurance, and the list goes on), and before I electronically send it off to my Public Relations man to post (instead of courier or post), I start to think of the implications. In days past my secretary would have taken this via dictation. Relationships would have had to been forged to distribute such a story, (local, forget about world-wide). This would have involved meetings, lunches and travel. Nope, just post it to the site now. Google will reach my fellow blogger in Canada that I know electronically.
Let’s talk about corporate structure and why many people still have a job. With this reduced need of people to do the same thing I am discussing, managers do not need to hire the secretarial pool. Post offices do not need to hire postal workers to collect, sort, and deliver this story. That means less demand for those postal trucks, gas stations, and oh…the many coffee shops on the way. If the managers have no one to manage, what are they going to do? A lot of managers around the world are great at wastepaper basketball.
Interconnectivity…Wait it gets worse
Forget about changing fashion trends, as so many of us can work from home if we desire. Baby Boomers have bought our homes already, and are downsizing as we become empty nesters. We have bought our 5 T.V.s, or traded them in for IPad’s and other mobile devices. We have bought as many suits as we could ever have wanted, as well as tennis rackets, golf clubs etc. Hell, we are getting too old for some of that stuff!
Our Kids to the rescue
Nope! Anyone with Millennials as kids, they are either living with you and / or they aren’t getting hitched. According to Demographic Intelligence marriage rates at least in the U.S. hit a record low, since they began keeping track. This number stands at a dismal 6.74% per 1,000. In addition, they certainly aren’t creating another baby boom as births have also hit an all- time record low, according to Child Trends.
The economy is changing…wake up!
It means the way we thought about economies doesn’t hold water anymore. We must re-adjust our gauges and find the new frontiers. The past measurements are obsolete. In addition, this should have a profound effect on how you view your investment choices and the areas you choose to put your money in. I know it might seem scary, but for the forward thinkers who have the ability to realize this and accept this…I promise there are incredible opportunities in the future. They just won’t be in the traditional areas. Whether it be in healthcare, travel, or technology; there are new areas every day. Get your head out of the sand!
This is what Grace Century tries to do!
More data to support this article:
Pingback: The Main Threat to Your Job? Technology....