Business is simply not investing enough. And business investment is the source of economic growth and prosperity. Let's explore why.
1.There's no good investment in the old economy.
We now have two economies. One is the old Industrial Age economy that is in decline. The other is the new Internet Age economy that is on the rise. One reason why we had the financial collapse was that banks invested their money in phony trick investments instead of real growth investments. Why? Because investing in the old economy (newspapers, cars, suburbs, malls, retail, manufacturing) is simply not a good investment.
2.Most business leaders are old. Most business leaders are over 40. They can see retirement on the horizon. It's tough to engage in that new risky business venture when one could just coast into retirement.
3.They don't get it. Business leaders do not understand the new economy and Nine Shift any more than anyone else, which is pretty zilch-ish.
Tomorrow: Is business fear of government regulation holding back investment?
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