Anorak | The coming economic boom will be based on new technology

The coming economic boom will be based on new technology

by | 18th, December 2012

THERE’S going to be the most God Almighty economic boom in a few years time. Yes, yes, I know, you think I’ve really lost it now. What with climate change, resource exhaustion and the current dismal times I’m obviously entirely barking.

However, there’s a good historical precedent for this. The 1930s.

A tiny bit of economics here. Yes, in the short term, growth is all about full employment, interest rates, all that Keynesian stuff. In the long term they have very little to do with it at all. In the long run growth is all about technological advancement. And no, this doesn’t have to be big things either. Working out how to make fewer and cheaper coffee cups lids contributes to economic growth, as does inventing electricity or the internet.

So what actually happened back then? Between 1929 and about 1947 there was pretty much no economic growth at all. Yes, the numbers showed growth in the war but building things to blow them up isn’t really growth. Actual living standards, even in the US, were not better in 1945/6

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Posted: 18th, December 2012 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink