Looking at the Future

Both as individuals and as a society, it's important that we have a reasonable view of the future. And in many respects, demography is destiny.

My view is that in the next few decades worldwide consumer purchasing power will grow exponentially compared to today, presenting great opportunities for world class competitive entrepreneurs and their companies. And the U.S. is now and will continue to be the leader in those kinds of companies.

In fact, today our free market economy has consumers accounting for approximately 70% of our nation's GDP. Even more important than where are are today, the U.S. is positioned very well to continue to lead in per capita economic growth through the 21st century.

Accordingly, we should welcome the continued growth and economic development of heavily populated but currently underdeveloped countries' economies as rapidly as possible. Their continuing economic development will present more opportunities for everyone. Simply stated, economics is not a zero sum game.

So what will things look like fifty years from now? Well, here's a sneak peek at what the Economist magazine foresees for 2060:

"-2060: The Economist looks at what the global economy will look like in 2060, based on forecasts from the Organization for Economic Cooperation and Development. 

“Economic power will tilt even more decisively away from the rich world than many realize. In 2011 the current membership of the OECD made up 65% of global output, compared with a combined 24% for China and India.

By 2060 the two Asian giants will have a 46% share of world GDP, the OECD members a shrunken 42%. 

India’s economy will be a bit bigger than America’s, China’s a lot.

Even so the Chinese and Indians will still be much less well-off than Americans … the same forecasts show GDP per person in China at 59% of that in America; in India it will be only 27%. 

And Americans will increase their lead over the citizens of some developed countries like France and Italy.”"

SUMMING UP

The more things change, the more they will stay the same.

Fifty years from now, American per capita income will continue to have no equal in the rest of the world. We will remain a wonderful and prosperous nation.

Meanwhile, the Europeans will continue to fall further behind.

Due to population and economic growth, China and India will be the world's biggest economies overall.

That said, the U.S. will remain the key driver of the world's economy with innovators and risk taking entrepreneurs leading the nation's private sector charge.

And we'll still be a free nation assimilating immigrants who share the fundamental American values of individual opportunity, self reliance and belonging to a fair society whose citizens always willingly come to the aid of those in need.

Thanks. Bob.