America In The Age of Disruptive Tech...
America In The Age of Disruptive Technologies
A Tale of Two Economies
The U.S. economy today is showing two radically different faces. On one side, the statistics portray an economy that's sluggish and gloomy, with GDP growing at just over 1 percent, wages stagnant and job creation slow. In contrast, the view from daily life is exciting and optimistic, with a constant flow of innovations transforming life as we know it. How can we resolve the conundrum and which view is right?
This presentation shows how America's transformation to a knowledge and idea-based economy is changing everything we think we know. The bulk of U.S. production is becoming increasingly dominated by high fixed cost/low marginal cost industries—the Internet, computers, software, email, pharmaceuticals, smart products for consumers (smart phones and their apps, for example), smart tools in industry, and "network goods" such as package delivery, wireless service, airline transportation, and cable TV. In these industries, the price of goods falls as more consumers are served—a P and Q relationship that is fundamentally different from yesterday's. The results are numerous, among them: higher concentration ratios in industry, above normal profitability for surviving firms, continual disruption in the marketplace, accelerated churn in our jobs, a falling cost of living and a boon in living standards for consumers … but a gross understatement of the true growth in America's economy.