Stefan Krieger, Ph.D., (Economics, Harvard University) of Ellington Management Group spoke about the state of the global economy at a Vectra Bank sponsored business breakfast on Wednesday, January 30, 2013 at the Denver Center for Performing Arts.
Dr. Krieger contrasted and compared the US economy with that of other significant regions of the world; most notably, the Euro Market and the Asian Market. His main point: Currently, the US economy is the best there is in a bad global economy. The US economy is only beginning to recover from the Great Recession of late, but it will recover – slowly.
Many regions of the world are fighting impossible odds (e.g., the Euro Market); yet, the US will lead the world economically in the next ten to twenty years despite its economic quagmires (e.g., national debt) because of these two factors:
1)The US is the most productive economy on the globe.
2)The US is the most innovative economy on the globe.
The US is poised for advantage in the global markets because of its capability for technological innovation. It is outstripping the rest of the world in this regard and will continue to do so in decades to come. US technological innovation will continue to raise productivity levels for years.
Secondly, the burgeoning new energy sector will bring long-term, heightened life to the US economy. The US is ready and able to create new forms of energy that will be cost-effective, pervasive and sustainable.
Nonetheless, Dr. Krieger stipulated that there is no longer a ‘we’ at the level of the whole in the economy who will benefit. Fragmentation is already evident.Those who are able to adapt to technological innovation and the structural changes innovation brings to the table will benefit the most.