The Power of Slow Change: Transition To The Information Age Economy

Society evolves. Along with it the industry.

I have been saying that old paradigms always gives way to a new order. Nothing is ever static.

And in the context of the industry, where agriculture gave way to industry, today the transition to the information age seems to be deepening as we move away from the paradigm of the industrial era.

Even the stock market seems to be saying so.

The following charts are from Bespoke Invest

One would notice that the technology sector in the US has mostly led, or if not placed a very close second (except 2002) during the US mortgage bubble days, based on the market cap industry weightings since 1998.

The sustaining dominance of the technology sector has been echoing on such transition where the rapid advances in technology translates to more dispersion of knowledge, specialization and a more roundabout production process—all of which would only be sustained under free market conditions—a dynamic which globalization appears to have accommodated.

Of course, not the everybody benefits from any changes. The important thing is the NET benefit from creative destruction.

We should see more of this dynamic percolate across the world.