Digital Deflation:The Productivity Revolution and How It Will Ignite the Economy

The first great bull market of the 21st century is about to begin. Over the next two decades, the American economy will create massive wealth thanks to low inflation, rock-bottom interest rates, and amazing gains in productivity driven by new technologies.

We‘re already seeing the signs of this turnaround. In the second quarter of 2003, productivity soared by an astonishing annual rate of 6.8 percent. This followed the 5.4 percent increase in productivity growth in 2002, which was the largest gain since 1950, according to Fortune magazine.

In many ways, the next bull market will resemble the most recent one, which was sparked by the “New Economy” of the late 1990s. Many of the same forces that fueled the enormous growth in the stock market during that era are ready to emerge again, and they will allow business leaders and investors - if they know what to look for -- to make huge profits.

In our summary of Digital Deflation by Graham Tanaka, we‘ll examine this new economic environment, review how we got here, and explore where we‘re going. This eye-opening analysis explains how digital deflation works and what it means for corporate decision-makers.