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Fortune Investor Data
Never mind reinventing government; thank your lucky stars for reinventing business. The embrace of all that's high-tech by Wall Street and business managers in the past decade has produced an unstoppa-bull market and a surging economy. The good news continued Thursday when the federal government reported faster-than-expected third-quarter GDP growth while wage costs held firm. The newly tech-heavy Dow loved the news, finishing the day up over 200 points. The reason? That low wage cost translates into a minimal threat of inflation, meaning the Fed won't tighten the cost of money by raising interest rates.
TIME senior economics reporter Bernard Baumohl says the economy's strength
has been able to perpetuate itself because, as the saying goes, it takes
money to make money, and right now America has plenty to go around. The
cycle: The economic boom and increased corporate profitability help to
create federal budget surpluses. Less debt means less government borrowing from
private capital markets, thus lowering interest rates and freeing up even
more money for businesses to invest. Businesses, in turn, continue to
channel capital into R&D and modernization. The main problem?
With the country's economic success tied so much to technology, if a
legitimate Y2K bug hits, you'd be safer flying in an airplane than roaming
anywhere near a trading floor.