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Thursday, November 5, 2020

Fed Reserve Chair Jerome Powell Discusses Economy

 Federal Reserve Chair Jerome Powell discusses the economy. Real GDP rose significantly over the past quarter and its expected to slow a little. One of the explanations he offered was because people are going back to work. That is very true and the economy is powering up. Of course services are low because they rely on socializing and that is impacting the ability to effectively engage the economy. 

He also went on to discuss a slightly less outlook for 4Q of 2020 and the need for stimulus. I'm a believer in trying new things. Stimulus through the hands of others made sense from a consumer spending standpoint but I think this one might be better to be focused on sparking development in our dilapidated cities and drawing back international investment (short versus long tail benefits)  

The U.S. has the opportunity to push its economy forward with digital transformation and the benefits that come from increased transference of knowledge. Because much of the world is going online it would make sense to develop our Digital GDP capacity and at the same time increase manufacturing. That will require a level of coordination between local, state, and federal governments. 

This isn't only about economics. This is about reorienting global networks and shifting the supply chains in the big data world of those networks back to cities that still have market relevance and can improve the position of diverse and ethnic millennial workers. There are no gifts in such a plan because this is about investment development that helps bring manufacturing/technology back and also create opportunities for for the young to compete on the global market. 

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