What if you could have omniscient powers that allowed you to predict the bursting of the economy? Nobel-winning economist Robert Shiller appears to be able to do just that. In an article for MIT Technology Review, Nanette Byrnes analyzes a talk Shiller gave about the next bubble threatening to burst: technology.
Shiller’s latest book is an argument that markets are both beneficial as well as harmful entities. He compares the rankings in the world like rankings of his latest book on Amazon: his book has three out of five stars, because some people truly detest it, and that is okay. His book is receiving diverse opinions, something people should look for more. Technology has opened the door for a wealth of knowledge, but with that comes vulnerability. People can leave their opinions and feedback on whatever they like now, and others can read these reviews that help dictate whether this product or service is worth their time. However, people can write negative reviews and potential customers may be exposed to something they had not thought of; the data age has created vulnerability for companies to have their weaknesses exposed.
Bubbles in the housing, stocks, and other markets have all been predicted by Shiller previously, so what concerns him in today’s world? The stock market today should raise some concerns. The market is very highly priced, but because of low interest rates. It is important to look and acknowledge the fears of inequality people have. One major worry is that machines and computers will take over jobs; this will look good as far as stock numbers, but there are a huge amount of people who would lose jobs. Technology is expanding rapidly, but few are proper analyzing the implications it has brought and will make in the future.
Technology has created a bubble because people are not estimating the impact technology truly has. It is nothing to be overly concerned about, as long as investors remain diversified. You can read the original article here: http://www.technologyreview.com/qa/543071/yes-there-is-a-technology-bubble-and-thats-okay/