Dawn of a New Economy

by Bruce Fenton

Mornings are a magical time. Whether it’s the first rays of light hitting the wave-tops, or the panoply of morning pinks peeking out against the waning blue of the night sky, mornings are special. Each new dawn brings with it the promise of a new day, the promise of something better yet to come.

Not that long ago, we we were treated to a special dawn of a new millennium, an event that comes once in a lifetime for only a few of those who have walked this planet. Less than a decade ago, many fretted over the calamity that this date change would bring about if computers failed, power went out, telephones stopped ringing, banks ran out of money, food disappeared from the grocery shelves, or the world came to an end.

As the years since the millennium have progressed and systems all over the world checked out, it became clear that except for a minor glitch or two, the new century arrived bringing with it a new morning of hope and prosperity instead of catastrophe.

A world of uncertainties will be replaced by a world of change, change driven by the entrepreneurial spirit, capitalism, and technology. These changes, that anthropologists might consider to be of the 500-year variety, have occurred overnight, transforming our nation and the globe into a better place to live.

The new dawn has brought to us the promise of a new economy. The underpinnings of the new economy are increased productivity, globalization of the marketplace, and the Internet.

Never before has our work force been so productive. As competition has increased, technology and training have allowed our workers to produce more at lower prices and for higher pay.

Our marketplace has become the world. Capitalism has won out over the inefficiencies of socialism, communism, and managed economies. The dominance of capitalism has given us a world market thirsty for the goods and services that only free economies can provide. As the economies of emerging nations grow, and their workers become more productive with the wants and needs that go beyond simple subsistence, they also will soon become consumer societies. The growth potential for our economy and those throughout the world has never been brighter!

Finally, the Internet, once a playground for techno-geeks, has become the backbone that makes all this possible. Its unique ability to pass information quickly and efficiently around the globe, combined with the forces of technology and globalization, are redefining trade and business. The result is a fundamental shift in economic thinking where ideas and the entrepreneurial spirit are valued at least as much as tangible goods. This promotes higher growth and lower inflation.

According to Stephen B. Schepard, editor-in-chief of Business Week, “Every second, seven people get onto the Internet somewhere in the world.” The changes brought about by the Internet have been the driving force behind our productivity improvement, the most critical part of economic growth over the past decade.

But now is not the time to be looking back. This is the time to be looking ahead to the excitement of the new economy.

Bruce Fenton is a financial consultant, a writer, and the president and founder of Atlantic Financial Inc. Bruce welcomes inquiries, comments, and questions. He can be reached by contacting The Fenton Report.