We really hope Fed Chairman Bernanke sees this Ted Talk by Andrew McAfee, a management research scientist at MIT’s Sloan School of Management. QE∞ will not rollback the technological forces that are shaping the global labor market and risks mutilating the savings of the risk averse and non-speculators, in our opinion. Here’s McAfee,
..in the not too long term…we are going to transition into an economy that is very productive but just doesn’t need a lot of human workers.
Mr. McAfee discusses many of the topics we have posted here at the Global Macro Monitor, including how the Google’s autonomous car will impact the demand for truck drivers! Google the next FedEx?
Understanding creative destruction and how technological innovation is impacting the labor market is key in guiding policymakers and investors during this disruptive period in our economic history. Disruptive technologies, in our opinion, are a factor in today’s record profit margins, why the NASDAQ is outperforming and Google’s stock is spiking. It is also why transformative tech is our favorite investment theme.
Have a listen.
(click here if video is not observable)