The new industrial revolution hits retail: prepare for mass firings.

Retail Technology

Summary: The new industrial revolution will have its greatest effect on industries that have large imbalances. Like retail, after decades of overbuilding stores. Lots of jobs will be destroyed. Watch closely, other industries will be hit with similar shocks. Hayley Petersen at Business Insider points to the next wave of the industrial revolution: "The retail apocalypse … Continue reading The new industrial revolution hits retail: prepare for mass firings.

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Look at the retail sector and see the power of the new industrial revolution

Summary: Economists and financial experts are baffled by events because their minds know only the past and so do not see the new industrial revolution at work, slowly in its early days. Look at the retail sector. What explains unusually high corporate profits, rapid growth in sales -- along with slow growth in jobs and … Continue reading Look at the retail sector and see the power of the new industrial revolution

Corporate profits are the market’s foundation, shaping a new America

Summary: Corporate profits have rising to an amazingly large share of our national income, powering the stock market while GDP and household income lag far behind. This has played a large role in shaping the New America of the 21st C. What caused this rise? What might reverse it? See my column at Wolf Street … Continue reading Corporate profits are the market’s foundation, shaping a new America

Why are we militarizing American society?

Summary:  Previous posts in this series showed how America has militarized. Today we ask "why"? The answer is superficially obvious, but the deeper reasons are mysterious. This is the conclusion to a series about the militarization of America.    {2nd of 2 posts today.} "Purgamenta hujus mundi sunt tria: pcatis, bellum, et frateria." -— This … Continue reading Why are we militarizing American society?

About the disturbing disconnect between markets and the real economy

Summary:  Today we have a guest post about the often discussed but still mysterious disconnect between the US risk markets and the US economy -- between Wall Street and Main Street. Since the crash, economists and investment strategists have confidently predicted it will close soon, certainly when the economy accelerated back to near normal speed. … Continue reading About the disturbing disconnect between markets and the real economy

Watch corporations strip-mine their future (and ours)

Summary: Al Qaeda (Bin Laden's organization, if it still exists in meaningful form) is a threat to America. A greater threat are our CEO's, some of whom who have discovered discovered a formula to vast personal wealth: leverage the company up (borrow), use those funds to buy back stock (boosting earnings per share), cut capital … Continue reading Watch corporations strip-mine their future (and ours)

Krugman discovers the Robot Revolution!

Summary:  One of the great challenges of the 21st century will be managing the next wave of automation. This rise in productivity can make us richer, create feudal-like inequality, or spark massive social conflict. The result depends on our decisions. The first step, as always is problem recognition. Today we took another small step forward. … Continue reading Krugman discovers the Robot Revolution!