No growth only Stagnation
In a recent interview between a Bloomberg reporter and an Analyst the question was raised, what is the remedy to all difficulties that the world economy is going through right now? The analyst said, we all know the answer it is growth.
Of course growth, we all know it. The analyst didn’t really give any clues to how to achieve growth, either because he was clueless or because most people don’t really have an idea of what the pillars of growth actually are, therefor can not give a solution to the problem.
These are the 3 fundamental pillars to growth,
1.CAPITAL = money, financing.
2.LABOUR = all type of workers, skilled ones and general labour
3.TERRITORY = Land to produce, to built and harvest the resources of the land
This is all it takes, Capital, Labour and Territory. This are the pillars that spur growth and always have since the dawn of civilization, for instance Spain quickly became the most influential country in Europe during the 16th century after adding Territory and Capital(gold stolen from the indigenous tribes) to its kingdom.
So did England, Portugal and Rome. The formula is simple, acquire Territory and Capital add Labour and you will grow. By looking at this formula it is very easy to identify where the problem is rooted with the low growth and the economy of today. At this very moment we only have one of the 3 pillars and thats Labour there is an abundance of Labour but there is little new Territory left and Capital is being preserved. The solution to this of course is more Territory so we can expand and grow, one of the greatest finds of new territory was the Virtual Territory. The Internet has been the biggest contributor to the growth of the past 20 years, it has created jobs and Capital but even the Internet is getting crowded almost everyone has a website or is part of a website (Facebook) hence a slow down in expansion and growth.
So what would be the solution, the solution is pretty easy. We need more territory to expand and grow again but thats not happening any time soon since this planet is limited and humanity has reached the limit of its borders, growth has been dull. The next best solution is to become more efficient with what we have and this is exactly what is going to happen until we can colonize an unknown planet in the universe.
Any company involved in preservation and efficiency is the company that will create the next boom in jobs and capital, anyone that would like to invest in the future and make money of the next coming era should take a look at companies operating in this field. The industry that will take charge in innovation due to the dire situation that we are in today, will be the industry of preserving energy, recycling and technology that enables us to be more efficient.
This are the 3 booming industries of the next 30 years. There is many companies that focus on this and are trading for very cheap in the market, do your research and you will find plenty. There is plenty of hidden gems.
