What Will Be the Catalyst to Restart the U.S. Economy?
Jason Barlow Cunningham
November 07, 2009
The U.S. economy ended its recession in third quarter. However, many businesses are waiting for a sign that it is safe to spend. While the future is unknown, it is interesting to speculate what will be the catalyst for economic growth in upcoming quarters.
In recent weeks, software consumers have been gobbling up Windows 7. Unfortunately, the introduction of this software does not mean that people need to buy another computer. Therefore, individuals will continue to use their computers until its memory or function is no longer useful. While Microsoft stands to profit from Windows 7, this product probably will not lead to a great U.S. economic expansion.
On the other hand, some are convinced that new cell phone sales will fuel the U.S. economy. However, people should not expect many U.S. residents to purchase a new cell phone before the end of the year. In this economy, some individuals are more likely to save money to create an emergency fund than to purchase a new cell phone.
Hopefully, there is enough foreign demand, especially in China for new cell phones. Otherwise, in the future, the cell phone industry cannot take full credit for spurring the next "great U.S. economic expansion." Clearly, the Blackberry and iPhone are validation of the incredible innovation of the cell phone industry during this decade, but the cell phone industry has had better financial days for now.
In addition, the strength of U.S. investment markets remains a concern. Many U.S. citizens are not investing outside of their company sponsored retirement accounts. A lot of individuals lack the financial resources to do so because of decreased wages and increased expenses in recent years. Many people have lost high paying jobs and now work for less pay. In other cases, some families have decided that one of the adults must stay at home with the kids because childcare is too costly. As a result, the standard of living for many U.S. residents has drastically changed over the last three years, and not for the better.
The investment scandals of Bernie Madoff and others have also hurt Wall Street's credibility. Yet, without Wall Street firms, many new start-up companies will not have the opportunity to become the next Microsoft or Google. The investment banking community will need to find investors for the "next great non-publicly traded company" that businesses and individuals cannot live without.
It has been proven that many people use social networks daily. Twitter, Facebook, and Myspace have become household names in the U.S and in other countries. If a company such as Facebook or Twitter ever attracts the type of investment that Google has, we may be headed for another tremendous U.S. economic expansion. When major corporations are able to find talent and market effectively at social networks, the U.S. will be in good shape. Until that time, you can keep thinking about what will spur economic growth.
In recent weeks, software consumers have been gobbling up Windows 7. Unfortunately, the introduction of this software does not mean that people need to buy another computer. Therefore, individuals will continue to use their computers until its memory or function is no longer useful. While Microsoft stands to profit from Windows 7, this product probably will not lead to a great U.S. economic expansion.
On the other hand, some are convinced that new cell phone sales will fuel the U.S. economy. However, people should not expect many U.S. residents to purchase a new cell phone before the end of the year. In this economy, some individuals are more likely to save money to create an emergency fund than to purchase a new cell phone.
Hopefully, there is enough foreign demand, especially in China for new cell phones. Otherwise, in the future, the cell phone industry cannot take full credit for spurring the next "great U.S. economic expansion." Clearly, the Blackberry and iPhone are validation of the incredible innovation of the cell phone industry during this decade, but the cell phone industry has had better financial days for now.
In addition, the strength of U.S. investment markets remains a concern. Many U.S. citizens are not investing outside of their company sponsored retirement accounts. A lot of individuals lack the financial resources to do so because of decreased wages and increased expenses in recent years. Many people have lost high paying jobs and now work for less pay. In other cases, some families have decided that one of the adults must stay at home with the kids because childcare is too costly. As a result, the standard of living for many U.S. residents has drastically changed over the last three years, and not for the better.
The investment scandals of Bernie Madoff and others have also hurt Wall Street's credibility. Yet, without Wall Street firms, many new start-up companies will not have the opportunity to become the next Microsoft or Google. The investment banking community will need to find investors for the "next great non-publicly traded company" that businesses and individuals cannot live without.
It has been proven that many people use social networks daily. Twitter, Facebook, and Myspace have become household names in the U.S and in other countries. If a company such as Facebook or Twitter ever attracts the type of investment that Google has, we may be headed for another tremendous U.S. economic expansion. When major corporations are able to find talent and market effectively at social networks, the U.S. will be in good shape. Until that time, you can keep thinking about what will spur economic growth.
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