Technology will lead the economic recovery

Worldview Thought for the Day

Tech writer Michael Malone agrees with me (ok, maybe I agree with him) that the tech sector will lead the way to American economic recovery, and probably soon.

From my point of view, the economies of the industrialized world have been in a severe state of transition for the past decade as technological solutions to everyday problems rapidly replace traditional ones. If one ignores the housing problem and the bank problem (both brought about by bad laws and bad government regulation), one sees that the current economic condition exists because traditional industries, once the driving force of the economy, are being replaced by technological ones that will be the driving force for the future economy.

Think about the number of technologies poised to break out. Alternative energy companies will probably begin to suplant traditional ones in the next decade. Alternative car companies will probably eliminate traditional ones in the next twenty years. Fabricated construction stands to reduce traditional construction, especially as waste becomes a greater consideration. Even personal technology affecting how we work, where we work, and what work we do stands to be revolutionized by technology in the coming decades.

I believe that the panic created by the current economic conditions is a result of people concentrating too much on what is being lost instead of what is being gained. This panic is revealed in recent surveys wherein the participants think that the current downturn could last as long as five years. Yet, at the same time, entire sectors of the economy remain even or surge ahead. The great majority of Americans are still employed, still in their houses, still saving, and still living their lives. Now, the evidence is growing that a turnaround is coming, but from a direction few people are looking for it to come from.

I think that the proof of my believe will be measured in three things in the coming year: the sales of personal electronics including televisions, cell-phones, and computers, the introduction of the next generation of hybrid cars and what their sales look like, and the investment made by the private sector in the conversion to alternative engery. I believe that each of these areas will see significant and strong growth in the next year, although perhaps not with the kinds of companies that have traditionally led the way.

I think thatthese areas, along with a growing American reinvestment in saving and reducing debt, could have the same kind of radical effect on the economy that the successive waves of the housing, bank, and job bubbles had last year. The only think that could prevent this from happening is an unwillingness on our part to accept that the future of the economy lies somehwere other than manufacturing.

-=DLH=-

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2 Responses to Technology will lead the economic recovery

  1. djhitz says:

    Ya see! I said this years ago.

  2. Angela says:

    the last quarter of 2009 seems promising as we have seen lots of signs of econic recovery against the massive economic recession. i hope that in 2010 all our economies would be back on track. recession really sucks.

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