In your rush to understand today’s stock market numbers or tomorrow’s tax and debt debates, you might be blinding yourself to two important long-term economic trends: the tripling of income over three generations in the United States and the way poor countries are finally also raising their standards of living.
This piece originally appeared in Stanford Business Insights from Stanford Graduate School of Business. To receive business ideas and insights from Stanford GSB click here: (To sign up : https://www.gsb.stanford.edu/insights/about/emails ) ]
This article is very optimistic and may be very realistic also. There are close to 7 billion people on planet. Most of them below the age of 35. This alone will ensure continuing grpwth for next 50 years no matter what happens. The demographic trends are long term and usually reliable. Once set in motion the ball keeps rolling. All these teeming billians will ensure their needs and aspiratiosn are met today or tomorrow. All those who will meet those needs will thrive. There will be losers in this new world...mostly uneducated and unqualified in developed world. Any jobs that arerepetitive in nature will go away in next 15 years as they are replaced by intelligent machines and systems. Knowledge workers, entrepreneurs and investors will thrive in this new brave world cutting across artificial national boundaries. They will think, act and behave alike regardless of where they were born and where they are living. Some countries like India will experience unprecedented prosperity and growth in 21st century. While some slow down to 2%. SOme like Pakistan, Afghanistan, Sudan may take another 25 years to start their growth journey. But they will start nonetheless.
on Jul 9, 2013Prof. Charles Jones is definitely a very intelligent like most economists are. But has not one very important factor been missing in any equation or economic model when wealth increase is calculated and that is the price the society pays for the loss of inter-human relations. The equation result is: Increase in personal wealth = loss of Human values loss of inter human relations. Is it worth beyond a reasonable amount of having wealth?
on Jun 27, 2013