We have referenced Bret Swanson's work in the past in this blog.
In his latest article he reinforces the research he recently conducted with Michael Mandel and debunks two extreme, and opposing views on the state of technology offered by Economist Robert Gordon, and Tesla CEO Elon Musk. Gordon argues that innovation is dead, and Musk argues we need to regulate the fast pace of technological growth, lest we kill all the jobs.
As Bret brilliantly argues, both are wrong! And as we have stated so many times in our writings over the years, one solution to the "roadblock" that is hindering the economy is less burdensome taxation. This would unleash capital spending by the part of the economy that has underspent on technology investment and has relegated the majority of industry to an inefficient existence. We would also add that a reduction in the regulatory burden on these businesses would also help greatly.
Nonetheless, Bret hits hits the nail on the head, in our view, and we would urge all investors to read his pieces and understand these issues thoroughly.
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