(1) Digital
Deflation describes the new forces that really drove the U.S. economy in the
1990s, and why they will return to power the economy during the next two
decades.
(2) New
theories and revelations explain why inflation declined so dramatically in the
1980s and 1990s and why, remarkably, inflation is likely to be headed even
lower over the next 10-20 years.
(3)
Most people realize that economic data are
often flawed. It is revealed how, in ways unknown to the general public, the
government has begun to institute new methods to measure more accurately the
unique economic benefits of the Digital Revolution, reducing inflation by 0.3%
per year thus far. As the government extends these methods to additional key
industries, it is shown how we are a lot closer to deflation than people
think, with actual inflation as much as 2% lower than what is currently being
reported.
(4) This
book uncovers how rapid and recurring technology advancements and “faster,
better, cheaper” products are reducing inflation – and boosting productivity
at the same time. It is explained how this phenomenon, Digital Deflation,
will grow to become an even larger positive force over the next two decades,
ushering in a new era of prosperity.
(5)
The policy implications of better data to
measure the benefits of Digital Deflation are enormous. The book shows how
the Federal Reserve has been too tight over the last few years, inadvertently
causing a recession and unnecessarily high unemployment. Further improvements
in economic data will show the Fed that it can become more stimulative – and
avoid the kind of deflationary trap that has plagued Japan recently and put an
end to the Industrial Revolution in the U.S. in the 1930s. A resurging
economy during the next two decades will produce budget surpluses and provide
a rare opportunity to address the looming Social Security and Medicare time
bombs.
(6) Near
zero inflation and very low interest rates coupled with a secular rise in
productivity gains will create massive amounts of wealth during the next 10-20
years, with bond yields going to record lows and stock market P/E multiples
going to new highs.
(7) Due
to inaccurate data, governments worldwide believe that inflation is higher
than it actually is, which has lead to overly tight monetary policy, weak
economies and persistently high unemployment, particularly in Europe. As more
governments learn to produce better data to measure the real benefits of
advancing technologies, there will be lower measured inflation, lower interest
rates, rising productivity, stronger economic growth and a rising tide that
will lift all boats worldwide for years to come.
Plus: Interviews
with Gordon Moore (Intel), Michael Dell (Dell), Irwin Jacobs (Qualcomm)..
