Chief Investment Officer Tony Roth and Chief Economist Luke Tilley of Wilmington Trust Investment Advisors discuss the productivity paradox.
- Forces such as market creation, firm strategy, consumer surplus, and progress all combine to help explain the disconnect between the productivity we see and the fact that it isn’t reflected in the economic data.
- Despite the paradox, productivity is extending the business cycle, allowing for low inflation and low interest rates, and presenting a number of interesting investment opportunities; it is the foundation of the equity market that we’ve experienced for the last decade and we expect it to continue broadly.
- Ongoing changes will dominate our future and continue through the next recession—and advances like artificial intelligence, 5G, driverless cars, customized medicine will stay at the forefront of our economy as we go through this radical transformation.
Please listen to important disclosures at the end of the podcast.