Not vice versa. As a matter of fact, more than anything else it is this recognition of the all-important role of investment spending and capital formation in generating solid, profitable economic growth and prosperity that has long ago made us highly critical of the potential profitability of the new information technology. Neither will they materialize in the future, and the reasons for that failure lie in the various, specific characteristics of this technology. Ironically, the great advantage of high tech is its minimal capital requirements but that's the same reason for its inability to create prosperity and profits. The smaller the capital input, the smaller the wealth and profits.
Capital formation is the one and only source of wealth creation and general prosperity.
The new information technology lacks the extensive capital investment that is indispensable to long-term success, profits and wealth. When that stops, recession will hit. Economic imbalances and financial excesses of unprecedented size have made the U.S. economy and its financial system more vulnerable than ever before. Confidence in the dollar has been the one linchpin that has held this disintegrating system together. High saving and heavy capital accumulation were paramount in boosting wealth and living standards in the course of the Industrial Revolution.