Posted Apr 4, 2015 by Martin Armstrong
There is a significant problem insofar as people do not comprehend how the economy evolves. We move through these waves of Creative Destruction and the skill sets change entirely. The Great Depression was such a wave that forced people off the farms and to become skilled labor.
This time technology is rapidly underway in changing our lives as well. Back 25 years ago, we had a staff of 240 people around the world. We began as the most expensive analysis in the world because our reports were delivered via telex. A client in the Middle East paid $150 per market per day just for delivery costs. This was why we began opening offices around the world to reduce the price of delivery. Then came fax, and that $150 per day dropped to $9. Now we have email and the costs have dropped to virtually nothing to deliver the analysis. Technology has changed our firm.
We now have the largest taxicab company that has no taxicabs, Alibaba is a hugely valued retail operation that has no inventory, Google produces a form of paying with your cell phone and PayPal becomes an international banking system while then you have operations like Facebook which has no original content or staff writers. Then you park your car and nobody is there for you take your ticket and then insert a credit card to leave.
If you cannot read between the lines you are in trouble. Forget sending your kids to be doctors and lawyers. The future is technology which will eventually replace both. We are close to starting Socrates. The Beta Testers have spent more than a year working on this project from around the world. This will replace human analysis. To program, is learning how to read and write. But you still have to comprehend the subject matter. This is a blend of both field to press forward in time.