I remember November 1994. That was the beginning of the dot com boom and bubble. Then the summer of 1995 pushed out the Netscape IPO and we were off to the races. Massive amounts of new money poured into the stock market. Whether money long on the sidelines with U.S. investors or new international money, the economics of the tech bubble produced jobs and technology that have become part of the fabric of our society. It also, through huge capital gains on stock sales, helped to temporarily balance the Federal budget. Innovation, ambition and excitement were everywhere. However, we clearly overdid it. The bubble popped on the heels of Michael Saylor’s bizarre 60 Minutes interview in early 2000 and the NASDAQ never recovered.
Fast forward almost a decade post the tech bubble pop and where are we? I see massive new infrastructure in our cities (San Diego, Vegas, Miami, etc.) in terms of commercial space and condos. Across our suburbs there are new homes everywhere. But much of this space is empty as we all know too well.
When does that space fill up?
How does that space fill up?
What or who will fill that space up?
What economic development could possibly move our economy in such a way that all of that empty space will fill up and contribute to economic growth?
And as I think of those questions I see interest rates held artificially at zero, unemployment at over 10% and technological breakthroughs constantly eliminating the need for human capital through a non-stop process of automation.
Explain to me how this not so rosy scenario changes during this generation?