*Very* Sobering

Guest post by Contributing Editor, Robert P. Seawright, Chief Investment and Information Officer for Madison Avenue Securities.

New York magazine has a fascinating article (from last month) examining the truly terrifying economic analysis of Northwestern’s Robert Gordon.

If nothing like the first and second industrial revolutions had ever happened before, what is to say that anything similar will happen again? Then, perhaps, the global economic slump that we have endured since 2008 might not merely be the consequence of the burst housing bubble, or financial entanglement and overreach, or the coming generational trauma of the retiring baby boomers, but instead a glimpse at a far broader change, the slow expiration of a historically singular event. Perhaps our fitful post-crisis recovery is no aberration.

Gordon’s research suggests as much.  You can watch him summarize it in the video below.

MIT’s Erik Brynjolfsson offers a rebuttal below.

But as the New York piece makes clear, a deeper dive into the research suggests that Brynjolfsson’s view isn’t as far from Gordon’s as we might like. Don’t do any research into this if you’re already depressed.  It’s very important but even more sobering.

Have a good week-end.

About Robert Seawright and the Above the Market Blog:

Above the Market is the blog of Robert P. Seawright, the Chief Investment & Information Officer for Madison Avenue Securities, a broker-dealer and investment advisory firm headquartered in San Diego, California. Its focus is the capital markets, economics and personal finance from a data-driven perspective. His About Me profile is available here.

Disclosure:

The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Madison Avenue Securities is not affiliated with FOLIOfn or The Portfolioist.

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